In the fire of inflation, Biden bows to the central bank and attacks the Republicans

US President Joe Biden visited the White House in Washington on May 9, 2022 to comment on expanding high-speed Internet access during the Rose Garden event. REUTERS / Kevin Lamarque / File Photo

WASHINGTON, May 10 (Reuters) – US President Joe Biden on Tuesday said he understands what Americans are struggling with under pressure to control high inflation and that the Federal Reserve is trying to address a key issue in its administration. .

The president pointed to the fact that rising inflation has pushed up consumer prices by more than 8% a year, strategically releasing oil from petroleum reserves and putting pressure on companies to deliver record-high returns to consumers at lower prices.

“I know families across the United States have been affected by inflation,” Biden said in a statement from the White House. “Every American needs to know that I take inflation very seriously, and that is my top domestic priority.”

Biden said the Govt-19 epidemic, supply chain problems and Russia’s war on Ukraine were contributing to the rise in inflation, but the central bank would do its job to control it. The US Federal Reserve raised interest rates by half a percentage point last week and is expected to release further hikes this year.

The president did not announce new policy measures in his speech, which came a day earlier than expected as new consumer price data show that inflation will remain high until April.

Republican tax plan

Biden sharpened his attacks on Republicans six months before the November 8 congressional elections, where Democrats hope to retain control of the Senate and House of Representatives.

“The Republican plan is to raise taxes on middle-class families.

Biden and top officials expect inflation to be temporary as prices rise in 2021, but it has persisted.

Demand driven by government spending and savings accumulated during epidemics do not coincide with the Greek supply chains and labor shortages, which trigger high inflation worldwide.

This has created a political problem as US consumers are staring at higher grocery and gas bills due to Russian oil and gas blockade measures following the invasion of Ukraine, which Russia calls a “special measure”.

Less than half of American adults – 44% – agree that Biden’s presidency and they view the economy as the nation’s most important problem, according to a Reuters / Ipsos poll last week.

Republicans are working to exploit the problem in congressional elections, promoting measures including easing restrictions on oil and gas producers and reducing certain taxes and government spending. But the party has not approved any policy document outlining the steps they will take in inflation.

Biden has sharpened his attacks on Republicans in recent days, including denying that former President Donald Trump’s “Make America Great Again” movement is serious. read more

Voters know Republican-led states are at the forefront of economic recovery and job creation, and Republicans will vote and our proven agenda will come in November, ”said Emma Vaughn, spokeswoman for the Republican National Committee.

Biden targeted Florida-based U.S. Senator Rick Scott’s proposal for a ‘recovery America’, which would include a middle minimum income tax that would cost middle-class families $ 1,500 a year, according to the White House.

Scott has said that despite being chairman of the National Republican Senatorial Committee, the campaign arm of the Senate Republican Committee, the project is unique to him. Republican Senate Minority Leader Mitch McConnell has rejected Scott’s call for a tax on Americans who do not pay income tax, and whose social security and medical care rights will be sunk.

Report by Trevor Hannigat and Jeff Mason; Additional Report by Steve Holland and David Morgan; Editing by Kenneth Maxwell, Heather Timmans and Paul Simao

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