The Federal Reserve Board has been waiting for evidence that the US inflation rate is falling. It’s not getting it, indeed, if anything, the rate is edging up.
That’s terrible news for Joe Biden, whose electoral rating is being damaged by the inflation-driven cost-of-living pressures in the US, which are showing up as the top-of-mind issue for US voters.
Donald Trump and the Republicans have seized on the cost-of-living pressures to undermine the Biden administration’s credibility as economic managers.Credit: AP
Donald Trump, of course, seized on the latest data, which showed annual headline inflation rising 3.5 per cent in March, an acceleration from the 3.2 per cent experienced in February. “Core” inflation – excluding volatile food and fuel prices – was steady at 3.8 per cent.
“INFLATION is BACK—and RAGING!,” Trump posted on his social media platform, Truth Social.
“The Fed will never be able to credibly lower interest rates, because they want to protect the worst President in the history of the Untied (sic) States!”
Despite the strength of the US economy and the historically low unemployment numbers, the Republicans have seized on the cost-of-living pressures to undermine the Biden administration’s credibility as economic managers.
The political dimension to the way inflation and interest rates play out through this year will swell as the November election draws closer, complicating further an already complicated task for the Fed.
Its chair, Jerome Powell, has insisted that the central bank’s decision-making is apolitical but that won’t stop Trump from politicising it if there are rate cuts this year. Indeed, his reaction to the latest data could be seen as a pre-emptive strike, designed to coerce the Fed by creating the perception that any rate cut would be designed to aid Biden’s attempt to retain the presidency.
‘RAGING!’: Trump pounces as Biden gets some bad news
13
0
11.04.2024
The Federal Reserve Board has been waiting for evidence that the US inflation rate is falling. It’s not getting it, indeed, if anything, the rate is edging up.
That’s terrible news for Joe Biden, whose electoral rating is being damaged by the inflation-driven cost-of-living pressures in the US, which are showing up as the top-of-mind issue for US voters.
Donald Trump and the Republicans have seized on the cost-of-living pressures to undermine the Biden........
© The Sydney Morning Herald
visit website
login
who are we?
contact us
qosheapp
Toi Staff
Gideon Levy
Belen Fernandez
Rami G Khouri
Mort Laitner
Ali Fathollah-Nejad
Nikkei Editorial
