Bidenomics Boosts Core Inflation to New Heights

by | May 7, 2024 | Recession News | 19 comments

Bidenomics Boosts Core Inflation to New Heights



Core inflation has surged further, surpassing expectations and raising concerns about the impact of President Joe Biden’s economic policies, also known as Bidenomics. The latest data shows that core inflation, which excludes volatile food and energy prices, rose by 0.4% in May, marking the largest monthly increase in nearly thirty years.

The sharp rise in core inflation is a stark contrast to the Federal Reserve’s expectations that inflation would be transitory and manageable. The central bank has been adamant that the recent spike in inflation is temporary, fueled by supply chain disruptions, pent-up demand, and re-opening of the economy post-pandemic. However, the latest data suggests that inflation may be more persistent than previously thought, adding pressure on the Fed to reassess its monetary policy stance.

Bidenomics, the economic policies put forth by the Biden administration, have been a target of criticism from both sides of the political spectrum. Critics argue that the massive fiscal stimulus packages, including the $1.9 trillion American Rescue Plan and the proposed $2.3 trillion infrastructure plan, have fueled inflationary pressures by overheating the economy and increasing demand beyond the capacity of supply chains.

The Biden administration, on the other hand, has defended its economic policies as necessary to jumpstart the economy and create jobs in the wake of the pandemic-induced recession. The administration argues that measures like the child tax credit, increased unemployment benefits, and direct stimulus payments have been crucial in providing relief to struggling households and stimulating consumer spending.

However, with core inflation rising at a faster pace than anticipated, concerns are mounting that Bidenomics may have unintended consequences on the economy. The surge in prices could erode the purchasing power of consumers, leading to a decrease in real wages and living standards. Businesses, on the other hand, may be forced to pass on higher costs to consumers, resulting in a spiral of inflationary pressures.

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The Federal Reserve has signaled that it is closely monitoring the inflationary dynamics and stands ready to adjust its monetary policy stance if needed. The central bank has reiterated its commitment to achieving its dual mandate of stable prices and maximum employment, signaling that it will not hesitate to take action to curb inflation if it poses a threat to the economy.

In conclusion, the recent rise in core inflation has put a spotlight on Bidenomics and raised concerns about the sustainability of the economic recovery. While the Biden administration’s economic policies have been instrumental in providing relief to households and businesses, the spike in inflation underscores the need for a balanced approach to economic stimulus. As policymakers navigate the road ahead, it will be crucial to strike a delicate balance between supporting the economy and ensuring price stability for the long-term health of the economy.


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19 Comments

  1. @lacker101

    The average home price in the US has gone from $290,000 to $410,000 in 4 years.

    We do not have 10 years to fix this.

  2. @kevinmiller39

    Interesting fact: TVs actually went down and priced in the last three years wonder why that is?

  3. @RB-bu2lh

    My grocery bill hasn't been under 100 dollars, doesn't seem to matter what I guy or try to cut back on

  4. @SB-du9if

    Incredible isn't it that the Two Best Presidents America has had in the last 50 years or so have been an Actor and a Businessman
    Think about that for a moment and realise that what you have running (or ruining) the country are Long Term Career Politicians
    They have Failed the public and profited from it
    At Your Expense !!!

  5. @bertdraing2512

    Shocking, they printed 40% more U.S. Dollars in 2020 alone. What did the feds think was going to happen. And once the U.S. dollar is no longer the reserve currency, all that money filters its way back to the U.S. Hyperinflation will take a foot hold.

  6. @seesea-sv3xw

    They actually changed the $1 store to the $5 store on my town.

  7. @seesea-sv3xw

    Funny Biden has done exactly whst Bill Mahar said he wish Trump would do to lose re-election.

  8. @shioq.

    Trump started the inflation with all the money printing during his lockdowns. Zion Don is a socialist that gave a blank check to Big Pharma so they could test drugs on the population.

  9. @bluecollarnobody4217

    I paid $45 yesterday to fill up my little Honda Civic under Trump. I paid $48 to fill up my 98 corvette with premium. This is ridiculous Delaware of all places where there are no sales taxes.
    BIDDN MUST GO

  10. @TheBurg229

    I remember when the entire media screamed when Trump’s economy had a deflationary period because all their big debt holding donor class friends would have it slightly harder to pay off debts.

  11. @johnhall5660

    The unemployment rate might be low, but workforce participation is as well

  12. @keanureeves9941

    They don’t want deflation. Trump doesn’t even want deflation. He was telling them the Feds to LOWER rates. He was saying that the Feds were trying to crash the economy but raising rates. The people with the assets want inflation to continue while the people trying to get in need deflation to crash the prices so asset prices will come down.

  13. @terrellevans2763

    Just want to say, my wife and I both worked full time up until my daughter was born in December. Since 2020, despite making more money each year, our quality of life dropped year after year. Now, at 28, I'm staring down the barrel of military enlistment as a means of a guaranteed wage and housing for my family.

    Fuck Joe Biden, fuck the neoliberal economic order, and fuck Marxist economic policy

  14. @smasmith57

    Dems will set a new world record for election cheating.

  15. @Darcvigilante

    Doesn’t matter Orange man still bad to the grave for some of these people.

  16. @platinumgnome3887

    Im glad i never trusted fiat currency and got into precious metal before trump got in office. I dont have time for inflation

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