Biden’s White House is fighting to reduce inflation in the US

White House spokesman Joe Biden is struggling to cope with rising prices because rising prices are threatening to disrupt the US economy, jeopardize its spending plans and jeopardize the Democratic Party’s chances in next year’s midterm elections.

The fight against inflation marks Biden’s dramatic economic transformation compared to his first months in office, while the main focus of the supervisors was to revive the U.S. economy affected by the plague, which was heavily affected by financial stimulation.

But tackling higher prices has now become a major goal for Biden’s financial group since then incoming data has eroded his hopes that inflation will be short-lived. On Wednesday, the U.S. consumer population showed a 6.2 percent gain in October since last year, the fastest increase since 1990.

“We are not sitting here and just waiting until things take a long time,” a White House official told the Financial Times. “We’ve been doing things for a couple of weeks now. . . we are going after him. “

Recently, White House officials are trying to reduce the price of stress by exploring ways to reduce some of the complexities, from semiconductor depletion to. delay in ports, which raises the price. Biden this week spoke with major retailers including Walmart and Target to discuss ways to reduce inflation.

But the steps that have taken place have had limited results, leading to doubts about the White House’s ability to influence what is driving inflation.

Globally, Biden regulators have tried and failed to persuade OPEC + to increase oil production, which could lead to lower oil prices. And it has not yet met the demands of businesses that want the White House to cut billions of Chinese dollars into foreign trade, which could lead to lower consumer prices.

“There is no slam dunk lever he can pull even if he wants to,” said Mark Zandi, an economist at Moody’s Analytics, adding that a good hope for the White House could be that inflation is declining as the epidemic subsides.

“I don’t think we have to go from 6 percent to 2 percent in three months to get it all out as a top economic and political issue,” he added. “What we need to see is what looks best.”

Persistence in rising inflation has disrupted other positive economic issues in the White House, including strong employment figures last month, a sharp decline in unemployment, and a passage of the Congress of Biden. $ 1.2 tn construction months later an argument at Capitol Hill. It also contributed to the restoration of democracy in the general and local elections earlier this month, including the loss of Virginia governor’s competition.

“I think [the Biden administration] “They are concerned about it, and I think they realize that it is politically difficult for them,” said Michael Strain, director of economics education at the American Enterprise Institute, a Washington think tank.[But] they are struggling with what to do. ”

Biden acknowledged the pressure on inflation to hit families’ budget for a trip to the Port of Baltimore on Wednesday afternoon. “Everything from a gallon gallon to a loaf of bread costs a lot of money,” he said. “It’s bad even if the pay rises. We still have problems. ”

“We are fighting these problems and trying to figure out how to solve them,” he said.

Continuous price hikes could also pose a risk to Biden ‘s second policy plan – $ 1.75tn in environmental and climate change – which Republicans and other Democrats have warned of rising prices.

The president stressed that the bill would help reduce inflation by reducing housing, child care and education in many families. But Republicans have urged Biden to suspend plans in favor of higher prices.

Worryingly, Joe Manchin, a senior Democratic Senator who said he was worried that too much money could go up in oil prices, Wednesday warned that “the risks posed by rising prices for Americans will not go away”. the worst ”.

“From the grocery store to the oil pump, Americans know that inflation tax is real and DC can’t ignore the economic ills that Americans face every day,” said Manchin, who should vote for the money he spends if he has a chance to pass. Senate.

Concerns about inflation at the White House have come back to haunt them Federal Reserve, while Biden is trying to re-elect Jay Powell for a second term as chair or replacement.

The US Central Bank has said it still expects inflation rates to decline over time, but officials agree that inflation is declining more slowly than expected, adding to fears that the Fed will be forced to tighten monetary policy faster than markets expect.

The central bank has already announced the termination of its $ 120bn-month procurement program at a rate indicating that the deal will end by June. Economists and market participants are increasingly likely that the Fed will raise interest rates soon.

“Strong demands and complexity will not go away anytime soon,” says David Riley, a financial analyst at BlueBay Asset Management.