Democratic president Joe Biden It has been said that inflation is rising, which has caused strong opposition from conservatives and others to its large-scale spending plan.
Biden made his comments at the meeting CNN City Hall on Wednesday night. During the event, a Republican participant asked him how he would deal with the recent increase in gasoline, car and food prices.
Biden said that the price increase was due to the lifting of COVID-19 restrictions that led to increased demand.
Biden said: “Inflation will occur in the near future because everything is trying to recover.” “Think about it. It’s reasonable-the cost of cars is a bit back to pre-pandemic levels…they are there because, in fact, For example, there is not much demand for cars… now suddenly it’s back.”
However, he added, “The vast majority of experts, including Wall Street, believe that long-term inflation is unlikely to get out of control.”
Although government spending during a recession usually contributes to economic recovery, government spending during an economic expansion often pushes up inflation. Supply shortages and labor shortages caused by the pandemic have also been blamed on rising inflation risks.
In the 12-month period ending in June, US consumer prices rose 5.4%, while the core inflation index (excluding fluctuating food and energy prices) rose 4.5%, the largest increase in 30 years. When Biden took office in January, consumer prices were increasing at a rate of about 1.4% per year.
Biden admitted in the city hall that the increase in unemployment benefits paid during the economic collapse caused by the pandemic may be the culprit for people’s reluctance to work. He encouraged questioners, restaurant owners, to raise workers’ wages.
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This is a breaking news story and will be updated as more information becomes available.
