President Biden has made some interesting comments recently about inflation. While he seems to have his fair slip-up of words, this time is a little different because he not only doubled down on his statement, but the White House released an official statement on the matter.
We’re talking about President Biden claiming he has decreased inflation by over 60% since his time in the White House, but that is simply not true.
Join Ed Butowsky today, as he discusses President Biden and his comments, as well as explains how inflation is not going away, only slowing down.
Summary:
- President Biden stated that inflation has dropped by over 60% from its peak, and core inflation is at its lowest in three years.
- This claim is misleading because inflation was below 2% when President Biden took office and later rose to over 9%.
- A decrease in inflation means prices are rising more slowly, not that prices are decreasing.
Regardless of what side of the aisle you sit on, it is important to be truthful and approach the problem realistically, otherwise, we’ll never fix it. Inflation is something that has become synonymous with the current administration, and with how close we are to election time, it will surely be a big talking point and a black eye for this administration.
While we have gone through a lot of turmoil recently, it is good to see inflation’s rate of change has decreased. The only conundrum we’re in now is quite a large one; and that’s that GDP is the key to economic prosperity and with interest rates as high as they are it’s not going to make any strong moves any time soon unless something changes.
Be on the lookout for interest rate decreases later this year, as President Biden himself has said, but don’t expect them too soon. No person or organization can tell the future, especially when it comes to the economy.
Thank you for reading this week’s “Making Sense with Ed Butowsky” article. To view the rest of Ed’s articles, you can click here or you can also check out Ed’s personal website to learn more about him.
For more information, email Jordan McFarland at jordan@chapwoodinvestments.com.
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