Biden Says "Inflation Is Unacceptably High." Announces Plan To Lower Prices

Matt Lillywhite

Inflation is way too high and is causing a significant amount of stress for Americans, per Treasury Secretary Janet Yellen. Even President Biden is concerned about the rising cost of living. "The fact remains that inflation is unacceptably high," he said. "Inflation is a challenge for families across the country, and bringing it down is my top economic priority."

Rising Prices Are Making Life Difficult For Millions Of People

The national average for regular gas climbed to $4.671 today. For context, the price was $3.045 one year ago, per the American Automobile Association. At the time of writing, gas in California costs an average of $6.194. In New York, it's $4.934. And over in Illinois, the price is approximately $5.131.

It's not just gas prices that are unaffordable. According to Forbes, "No food category saw a price decrease in 2021 compared to 2020, according to the United States Department of Agriculture (USDA). And the department predicts food prices to rise a total of 5% to 6% in 2022, according to its April report."

Almost two-thirds of Americans now live paycheck to paycheck, according to CNBC. So, the rising cost of living is clearly making millions of people worried about their financial future. “Depending on where you live, $100,000 may not get you that far,” said Anuj Nayar, the financial health officer at LendingClub.

Here's What Some Experts Say About Inflation

According to Robert Triest, a professor of economics at Northeastern University, "Inflation has turned out to be more persistent than we anticipated." In part, that's because "Russia's invasion of Ukraine put a lot of upward pressure on oil and natural gas prices, as well as food prices." Although Robert expects high inflation to continue over the next year, he expects annual inflation to eventually decrease to 2% over the long term.

Mohamed El-Erian, the chief economic adviser at Allianz, says The Federal Reserve (Fed) needs to do everything within its power to get inflation under control quickly. "The Fed didn't recognize that the drivers of inflation were widening," he said on CNBC. "The Fed didn't recognize that it wasn't transitory. And therefore, they did not move early enough." El-Erian continued to say that the Federal Reserve should continue hiking interest rates until inflation is well contained. And if the Federal Reserve doesn't take action right now, El-Erian believes that inflation may continue to be problematic for the foreseeable future.

During an interview with Fox Business, Oil Associates President Andy Lipow said that inflation has not peaked because oil and natural gas prices continue to rise. "That's going to impact everything from electricity to people's hot water heaters to cooking and so forth. "So I think that inflation is going to continue over the next few months."

The President Recently Announced A Plan To Fight Inflation

"Americans are anxious," wrote Joe Biden in The Wall Street Journal. "I know that feeling. I grew up in a family where it mattered when the price of gas or groceries rose. We felt it around the kitchen table. But the American people should have confidence that our economy faces these challenges from a position of strength."

Joe Biden has reportedly proposed clean energy tax credits and investments to reduce the cost of electricity and gas. "A dozen CEOs of America's largest utility companies told me earlier this year that my plan would reduce the average family's annual utility bills by $500 and accelerate our transition from energy produced by autocrats." He also plans to fix supply chain bottlenecks, improve infrastructure, and reduce the cost of shipping goods to the United States from overseas.

What do you think about inflation? Leave a comment with your thoughts. And if you think more people should read this article, share it on social media.

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