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Analysis: Biden finds inflation obscuring a strong economy | Health

In the White House’s view, families recognize that their economic situation has improved, but there is this feeling that everything else in society is not functioning. They point to diminished institutional confidence and political polarization as a possible explanation for this trend.

Republicans used inflation to beat Biden, but West Virginia State Senator Joe Manchin, a GOP Democrat, upheld the president’s $ 2 trillion tax and social program agenda because of inflation concerns. I refused to do it. Down version.

The White House believes that renewing positive public sentiment depends on easing inflation.

The Federal Reserve expects inflation to fall in the second half of this year as interest rates rise, although inflation is still above the Federal Reserve’s annual target of 2%. The White House is looking forward to the idea that as prices rise, the direction of inflation tends to become more important to voters. This suggests that Biden may benefit if prices are stable and people place more importance on their well-being.

The administration has pointed out that inflation is a global problem, but it also speaks to the impact on the US economy from unprecedented amounts of official development assistance. Prominent economists such as former US Treasury Secretary Larry Summers and former International Monetary Fund chief economist Olivier Blanchard warned early on that the coronavirus rescue package would be too large and inflation would be high. And Mr. Summers said inflation could make it difficult for Biden to reach the rest of the agenda. This is a prediction of his recent legislative struggle.

Analysis: Biden finds inflation obscuring a strong economy | Health

Source link Analysis: Biden finds inflation obscuring a strong economy | Health

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