President Biden welcomed a minor reduction in inflation on Tuesday and claimed that his Inflation Reduction Act will further reduce prices, but a scattering of major media headlines suggests that the president’s comments were poorly timed.
While annual inflation slowed to 8.3 percent in August, the core Consumer Price Index, a stronger indicator of long-term trends, rose to 6.3 percent at a faster increase than anticipated.
Biden stated in his speech on the South Lawn of the White House, “We are making progress.”
Nonetheless, he recognized there was more work to be done: ‘We’re also reducing prices on other items.’ We have much to do. We are making progress.
Ahead of the major event, it was reported that prices rose by 0.1 percent in August compared to the previous month, despite the decline in the price of gasoline. However, food prices and monthly rental rates increased.
“President Joe Biden praised progress on inflation on Tuesday, despite the latest official data reinforcing concerns,” USA Today reported in a story titled “Is Biden to blame for the decline in inflation?” The president’s victory lap is premature, according to experts.
The New York Times titled its story, “A Sobering Inflation Report Casts Doubt on Biden’s Claims of Economic Progress,” stating that the report undermined Biden’s claims of economic progress.
The New York Times wrote, “President Biden convened with top Democrats at the White House on Tuesday to celebrate their inflation fight at an unfortunate time, as a sobering new report revealed how far the economy still must go to rein in surging consumer prices.”
President Joe Biden’s victory lap for his climate change and prescription medication prices measure stumbled on Tuesday, as he celebrated its passage at the White House while the stock market saw its largest two-year decline.
CNN host Alyson Camerota stated as the network transitioned away from Biden’s speech, “There’s this sad split-screen right now with the Dow taking a total beating down more than one thousand points, and it feels hard to be celebratory for some.”
CNN wrote, “Inflation may be reducing, but food prices continue to soar.”
Bloomberg’s story on Biden’s remarks was titled, ‘Biden’s Celebration of the Economy Ignores Inflation, Which Haunts It’
According to figures from the Labor Department, food prices have increased by 11,4 percent compared to the previous year, the highest yearly increase since May 1979.
During a Tuesday program of CNN Newsroom, live coverage of Biden’s speech was discontinued.
Biden asserted that the Inflation Reduction Act was “the single most significant piece of legislation passed by Congress to combat inflation and one of the most significant laws in our nation’s history.”
During this time, the Dow Jones Industrial Average experienced its worst day since June 2020.
‘Okay. You are currently listening to Vice President Biden at the White House. CNN host Alyson Camerota said, “He’s celebrating the passage of the Inflation Reduction Act, and he says he’s been fighting big pharma for decades.” Some people find it hard to be celebratory in light of the Dow’s more than one-thousand-point decline, which feels for an uncomfortable split-screen situation.
Victor Blackwell, co-host, added:
This is the day that the White House celebrates the Inflation Reduction Act, a fresh study indicates that inflation is particularly high, and Wall Street is reacting to this in anticipation of what the Fed will do. The decision will be made on whether to increase interest rates by a half point or three quarters of a point – they are likely to increase, but by how much is uncertain. We must determine in only a few days.
At the opening bell on Tuesday, the major market indexes on Wall Street fell dramatically as the new inflation statistics fueled fears that the Federal Reserve will continue its aggressive pace of rate hikes.
At one point, MSNBC also cut away from the president’s speech, and host Nicolle Wallace shifted to discussing inquiries into former President Trump.
And while Biden trumpets the Inflation Reduction Act as the key to cutting prices, the impartial Congressional Budget Office assessed that the bill will have a little impact on prices this year and may either help or increase inflation next year.
According to the Congressional Budget Office, the bill’s extended premium subsidies for people who purchase their own health insurance will benefit consumers but raise inflation by increasing demand.
The bill also intends to reduce specific expenditures, such as those of prescription medications for seniors and home energy efficiency rebates. Additionally, the bill might cut inflation by raising $238 billion for the deficit.
However, since the passage of the Inflation Reduction Act, Biden has also pledged to cancel up to $20,000 in student debt, a proposal that, according to the Committee for a Responsible Federal Budget, would wipe out the $238 billion in savings.
Monday’s report by the Committee for a Responsible Federal Budget wrote, “After taking an important step forward for deficit reduction with the Inflation Reduction Act, the president’s move on student loans constitutes two steps back.”