Tuesday saw President Joe Biden celebrating the approval of his climate change and prescription medication pricing legislation at the White House as the stock market had its largest decline in two years.
In response to Tuesday’s revelation that inflation was basically unchanged in August, the Dow dropped more than 1,250 points and the S&P 500 fell 4.3% as Biden spoke.
Biden said during his address on the South Lawn of the White House, “We’re making progress.”
However, he recognised that more work remained: “We’re also bringing down other costs.” More has to be done. We’re making progress.
The occasion was organised to support Democrats’ efforts to lower American living expenses.
On the South Lawn on the sweltering bright day, over a thousand people were jammed.
The president was applauded by Democratic members of Congress, union leaders, and Biden fans.
However, his day was clouded by the markets’ downward trend and August’s 8.3 percent inflation figure. The declining Dow statistics were mentioned in the cyrons of cable news networks as they broadcast his comments.
Biden also made a mistake. On the 80 degree day, he had taken off his suit jacket, which he subsequently walked on.
While discussing his legislative success, he paused to pick up his coat and said, “This remarkable tale is being written today in America by this administration while I walk all over my coat.”
The gathering was intended to serve two purposes: to demonstrate to people that he and his party can make progress in Washington as the November congressional election draws near, and to criticise his political enemies.
Republicans were criticised by Biden for their opposition to the package. Republican made the decision to not join us, he said.
Although he avoided using the previous president’s name, he also blasted Donald Trump’s tax reduction: “Under my predecessor, there was a $2 trillion tax cut, not a cent of which was paid for and it mostly benefited the richest 1% of the American people and the largest businesses,” he added.
It was terrible news for the Biden administration and an indication that the Federal Reserve would keep raising interest rates, which will increase the cost of credit cards, mortgages, and other loans.
With 8.5 percent in July and 9.1 percent in June, the inflation rate for August was 8.3 percent. However, economists had anticipated a greater decline. The news sent the stock market into a tailspin, with the Dow dropping more than 500 points and the S&P and Nasdaq falling by 2%.
The Biden administration has often praised the fact that petrol prices have declined in recent months after reaching over $5 per gallon in certain areas of the nation.
However, the cost of food, which increased at an explosive pace, was what drove the August inflation statistics. The cost of food increased by 13.5 percent over the previous year, which is the highest yearly rise since February 1979.
Republicans launched an assault, with Ronna McDaniel, chairwoman of the Republican National Committee, claiming that Americans ‘can’t afford’ Biden as president.
Families can’t afford Biden and the Democrats, plain and simple. The voters are aware that this issue was caused by Democrats’ careless spending, and that the only way to fix it is to remove those politicians from office.
Americans struggle to fill their shopping baskets today while Biden and the Democrats conduct an out-of-touch victory lap,’ she added in a statement.
Additionally, prices for things like child care and dining out have increased.
American renters are also paying more each month since fewer individuals are purchasing houses owing to high mortgage rates, which in turn is causing a decline in the supply of rental units.
But Biden said that costs had virtually remained unchanged, which he described as “good” news.
In a statement on Tuesday, he said: “Overall, prices have remained practically stable in our nation these past two months: that is excellent news for the American people, with more work remaining to do.”
We approved the Inflation Reduction Act in order to reduce the price of healthcare, prescription medications, and energy, but bringing down inflation will require more time and perseverance. Additionally, when we lower costs, we create well-paying jobs and restart American manufacturing, as shown by my economic plan,’ he said.
In a low-key ceremony, Biden signed the $430 billion Inflation Reduction Act last month.
However, on Tuesday, he will host a sizable celebration on the South Lawn of the White House for hundreds of his fans.
According to the White House, it will include Cabinet Secretaries, Members of Congress, Governors, Mayors, climate and environmental leaders, healthcare advocates, union members, and others.
Republicans claim that the proposed law would result in greater energy costs, more taxes for the middle class, and maybe more Internal Revenue Service audits.
The bill provides incentives for the renewable energy sector, allows Medicare to bargain for cheaper medicine costs for the elderly, wants to guarantee companies and the rich pay their taxes by bolstering IRS resources, and attempts to fight inflation by lowering the government deficit.
By claiming that he and the Democrats have helped to guide the economy back to more stable footing, Biden will use the event to bolster his own economic credentials.
Voters are dissatisfied with the president’s management of the economy, which is reflected in their poor approval ratings.
According to a CNBC survey conducted in July, Biden’s popularity rating for the economy was just 30%, which was worse than that of both Donald Trump and Barack Obama.
Democrats are concerned about how voters will behave come November when they are trying to maintain control of Congress due to those statistics.
The trillion-dollar social welfare plan known as “Build Back Better” that Biden sought to pass ultimately failed when moderate Democratic Senator Joe Manchin objected, expressing fears that it would increase the budget.
Following months of discussions, Manchin agreed to support the Inflation Reduction Act.
Manchin received the pen that Biden had used to sign the Inflation Reduction Act into law at the White House in August.
The West Virginia senator later told reporters, “It was a great gesture.”
Despite the bipartisan infrastructure bill, the measure is among Biden’s greatest legislative successes.
In Congress, it received no Republican votes.
It comprises $430 billion in expenditure, generates $737 billion in income over a ten-year period, and is anticipated to reduce the deficit by around $300 billion.
By enabling the government to bargain with pharmaceutical corporations for cheaper Medicare prescription medication prices, it generates $265 billion.
Its $369 billion in climate measures, together with $64 billion in expansions of Affordable Care Act subsidies, are expected to result in a 40% reduction in carbon emissions from prior levels.