In an op-ed for The Washington Post, former Obama-Biden Treasury Secretary Larry Summers points out that it’s time for the Federal Reserve and Biden Administration to retire their claims that inflation is transitory. In reality the American people are seeing historic inflation and shrinking paychecks.
Bottom line: Bidenflation hits the poor and middle class the hardest.President Biden’s tax hikes and spending binge will only make it worse.
CLICK HERE to read the full op-ed.
Bidenflation is a pay-cut families can’t afford.
“First, there was a claim that price increases were confined to a few sectors. No longer. In October, prices for commodity goods outside of food and energy rose at more than a 12 percent annual rate. Various Federal Reserve system indexes that exclude sectors with extreme price movements are now at record highs.”
- The Bureau of Labor Statistics reported that the consumer price index grew by 0.9 percent in October and 6.2 percent over the past 12 months – surging way past expectations.
- Annualized since Biden’s first month of office, inflation is on track to be 7.4 percent – which is the highest rate since February 1982.
With more than 10 million job openings, inflation is still rising and President Biden is holding back our recovery.
“…the speech pointed out that there was ‘little evidence of wage increases that might threaten excessive inflation.’ This claim is untenable today with vacancy and quit rates at record highs, workers who switch jobs in sectors ranging from fast food to investment banking getting double-digit pay increases, and ominous Employment Cost Index increases.”
- Real wages have fallen 7 out of 9 months since Biden’s first full month in office – declining by 0.5 percent over the last month.
- Median-income households are on track to lose at least $1,755 in real wages by the end of Biden’s first year in office.
The American people are worried about inflation.
“…the speech argued that inflation expectations remained anchored. When Powell spoke, market inflation expectations for the term of the next Federal Reserve chair were around 2.5 percent. Now they are about 3.1 percent, up half a percentage point in the past month alone. And consumer sentiment is at a 10-year low due to inflation fears.”
- According to Moody’s, consumer prices will rise 2.24 percent higher after the Biden infrastructure, American Rescue Plan, and Build Back Better spending than in a Biden-free economy.
- Inflation is now tied with COVID as Americans’ main concern, and the American people have lost confidence in the President’s competency to heal this economy.