Biden warns of inflation surge following recent unexpected increase.

President Biden Claims Inflation Has Fallen for 10 Straight Months

“More Americans are working today than ever in the history of this country. And inflation has dropped 10 straight months in a row,”

President Joe Biden made this claim during a recent prime-time Oval Office address to the nation. Despite Democrats’ and Republicans’ differing views on the nation and economy, Biden stressed the need for bipartisanship.

The Reality of Inflation

While Biden’s statement may not be entirely accurate, it is true that the annual personal consumption expenditures price index rose to 4.4% in April, which is higher than the 4.2% posted in March. The core PCE, which factors out volatile food and energy prices, also rose to a 4.7% annual rate.

However, the consumer price index fell to a two-year low in April, and the producer price index registered a two-year low of 2.3% in March.

The Impact on the Economy

Despite Biden’s recent debt ceiling agreement, Fitch announced that the United States’s AAA rating would stay on a negative watch. The group is monitoring “the full implications of the most recent brinkmanship episode and the outlook for medium-term fiscal and debt trajectories.”

The Fed has signaled that due to declining inflation, the board could finally cease raising interest rates as a means of combating rising prices.

Expert Opinions

According to Ryan Sweet, chief U.S. economist at Oxford Economics, “odds are rising that we will be altering the forecast for the fed funds rate in 2024, reducing the number of rate cuts.”

While the White House did not answer questions about Biden’s inflation claims, it is clear that the impact of inflation on the economy is a complex issue that requires careful consideration and expert analysis.

Summary

• Biden claimed that inflation has fallen for 10 straight months during a recent prime-time Oval Office address to the nation.
• The annual personal consumption expenditures price index rose to 4.4% in April, while the core PCE rose to a 4.7% annual rate.
• The consumer price index fell to a two-year low in April, and the producer price index registered a two-year low of 2.3% in March.
• Fitch announced that the United States’s AAA rating would stay on a negative watch, and the Fed has signaled that it could cease raising interest rates due to declining inflation.
• Expert opinions suggest that the impact of inflation on the economy is a complex issue that requires careful consideration and analysis.

*As an Amazon Associate I earn from qualifying purchases