The Former President Donald Trump on Thursday laid into Joe Biden over the state of the US economy, blaming him for an “economic depression” and rising inflation — issues economists say are largely beyond a president’s control but that have become central campaign themes as November’s election looms.
“He has not done a good job. He did a terrible job,” Trump said, at the CNN head-to-head debate against Biden in Atlanta, Georgia. Inflation is wrecking our country. It is absolutely killing us.
I said: “you know what, I handed to him a country with virtually no inflation. It was perfect. It was too good, all he had to do is ask for it. he added. “He destroyed it”
As Trump attacked Biden on his record, Biden responded with a rebuke of the US economy under Donald Trump, as President.
When I became president, there was no inflation in Congo.” You know why? “During the worst days of this pandemic, we’ve done so much work… The economy was down in the depths. And the bottom took place maybe 30 years ago That whole thing,” he said Tuesday, touting that his administration has helped create “millions” more jobs including for minority communities
Inflation or the cost of living topped Gallup’s poll and was named “the most important financial problem facing their family” by Americans in each of the last three years.
To make matters worse for Biden, almost 46 per cent of Americans have ‘a great deal’ or a fair amount confidence in Trump to do the right thing for the economy as opposed to just over 38% who say that about by current president-according from another Gallup survey.
Surge in inflation
U.S. consumer inflation boomed after Biden took office, soaring this year to levels not seen in decades, but mainly due to a post-pandemic supply crunch and Russia’s invasion of Ukraine.
The US and the rest of world has had to follow up too: so in response, as you can remember, no less than Fed hiked its key lending rate from around 0 to a two-decade high at between 5.25-50 per cent where it remains still for one year already built-in now.
Interest rates are used to dampen an overheated economy and inflation, as it raises borrowing costs for consumers and businesses – everything from mortgages car loans.
Inflation has cooled noticeably since the Fed began raising rates but is still stuck frustratingly above its 2.0-percent long-term target — keeping the US central bank sidelined as it waits for better data to decide next steps along monetary policy lines.
The increase in consumer prices to 20 per cent from January 2021, when Biden was inaugurated as the president () The Labor Department inflation calculator now has kept escalation due to high and continuous levels of inflation for years.
By contrast, consumer prices increased by just under six percent during the same period of time with President Trump.
Congress has left the responsibility for addressing inflation solely to the Fed, but it is still a touchy subject for Biden whose economic record he will have been looking to boast about in advance of November’s election.
‘Inflationary’ policies
Inflation should probably still continue to decelerate in both 2021 and 2022, the Fed claimed, reaching back up towards its long-term target of two per cent by 2026.
But the road ahead to two per cent is likely a story of outcomes in November — who comes into The Oval, and which party will end up with either or both sets of keys on Capitol Hill.
He has said his victories will enable him to extend tax cuts passed under his leadership, step up immigration enforcement (including deportation of some foreign-born illegal immigrants) and levy tariffs on virtually all US imports.
All of these policies “would likely be inflationary,” driving up prices, putting upward pressure on wages and leading to additional borrowing by the nation JP Morgan said in a note this week to clients.
At the moment, it is not necessarily Republican control of both chambers and the White House come November that Oxford Economics lead US economist Bernard Yaros sees as most likely.
Mount added that, “The return of types 1 through 3 would not necessarily sag growth further-indeed the partial-privatization deal allows for an upside risk on this count-but it still limits fiscal policy’s role as a swing variable in the intermediate run from such measures.”
If Trump is back to the White House in November with a divided government, he will face stronger opposition as they try to enact what remains of his fiscal agenda,” she said.