CNN
–
President Donald Trump admitted in an interview with Fox News’ Sean Hannity aired Tuesday night that inflation was rising again. However, he said the Biden administration’s runaway spending was liable.
“Inflation is back,” Trump said. “I had nothing to do with that. These people run the country. They spent money so no one had spent it.”
Trump is right about returning inflation. Consumer prices have risen far more than expected last month. The Bureau of Labor Statistics, reported last week, was supported by pushing out fuel and egg prices, particularly the prices. January marked the largest monthly increase since August 2023. And prices rose 3% year-on-year for the first time since June 2024.
The president is also right that he cannot take up much of the responsibility. Former President Joe Biden occupied the 19½-day oval office for 31 days covered in the latest report.
But Trump’s claim that Biden is blamed on inflation is controversial. Economists disagree about why Biden went back to near exactly the level after he became president, after inflation surged exactly. Prices took office in Biden’s first year, and inflation surged in his second year, falling after hitting 40-year highs in June 2022.
Trump on Tuesday night was not clear what his claims were mentioned, but appeared to denounce inflation for Biden’s demand for “a new green scam.” No such bill has been passed.
“They were given $9 trillion to throw away the windows – $9 trillion, they spent it on a new green scam,” Trump said. “It’s the biggest scam in the history of the country.”
Biden signed an infrastructure bill that includes the Green Energy Project, which cost more than $1 trillion in 2021, totaling $3.4 trillion in relief. According to the Responsible Federal Budget Committee, they added about $5 trillion to the deficit in their first two years. According to the CRFB, it also includes Biden’s signature inflation reduction law, which also includes a combination of tax credits and spending, which actually saved $240 billion to the government due to increased tax enforcement and prescription drug savings. . Republicans took over the House in 2023, and Biden has not passed a significant amount of law in the past two years.
Some economists, including former Federal Reserve Chair Ben Bernanke, have partially denounced significant spending due to the economy’s overheating.
“The US response to the Covid-19 pandemic included a series of federal initiatives, particularly the CARES Act and the US rescue plan. Report. “These programs contribute to strong consumer and business demands. and strengthened the labour market (between mid-2021 and early 2022, the proportion of employment vacancy to unemployed doubled, putting pressure on wages and prices.”
However, the same report denounced price increases on factors such as increased production costs associated with swings in demand, war in Ukraine, and supply issues during the COVID era.
The January 2023 report BLS condemned inflation regarding “energy price volatility, backlog of goods and services work orders due to supply chain issues caused by Covid-19, and changes in price in the automotive industry.” did.
And in a September 2024 report, the International Monetary Fund said it was not responsible for any macroeconomic impacts like federal spending.
Therefore, the ju-degrees are clearly stated about how much federal spending contributed to inflation. Trump may be right that the Biden administration spent too much of the wrong time. But the economists agree that they did not spike inflation alone.
And that certainly isn’t increasing the price right now. The avian flu has raised the fastest egg prices in a decade, and prices remained stubbornly high as the combination of slump in demand and sanctions on Russia and Iran continued to raise fuel prices.
However, prices rose completely last month, not only in volatile and difficult categories such as food and fuel. It almost certainly could halt federal efforts to lower interest rates and keep the costs of borrowing high for American consumers and home buyers. And mortgages and rents are sustainable sources of inflation.
Another thing that doesn’t help prices: Trump’s tariffs. Economists acknowledge that increasing taxes on imports costs American consumers who ultimately leave the bill in place. It could deny the savings realized from his plans to cut spending, cut taxes and increase fossil fuel drilling licenses.
Therefore, Biden may have contributed to America’s stubborn inflation issue. But it’s now a Trump issue, and his most notable economic policy may make it worse.
