Friday, September 22, 2023

Biden Administration Continues to Struggle to Curb Inflation

inflation sucks, thanks biden

Persistent Battle with Inflation

Despite recent statements from Federal Reserve Chair Jerome Powell and financial analysts pointing to slight declines in the inflation rate, the fight against surging prices is nowhere close to a resolution. As of July, 61% of Americans find themselves living paycheck to paycheck, a marginal but nonetheless significant increase from 59% in the previous year, according to a LendingClub report.

Jerome Powell remains cautious about celebrating any victories over inflation. In recent remarks, Powell pointed out that the situation “remains too high,” a position echoed by experts in the field, such as Jefferies’ David Zervos. This caution suggests that more interest rate hikes could be on the table, a move that has traditionally tightened the financial noose around consumers.

The Biden Administration’s Role in Inflation

Under President Biden, the issue of inflation has remained stubbornly persistent, a point of concern that has had far-reaching effects on the U.S. population. The Federal Reserve has already resorted to 11 rate hikes, pushing the key interest rate to a target range of 5.25% to 5.5%, the highest it has been in more than two decades. This decision to raise rates has been an immediate result of Biden administration policies failing to control inflation effectively.

TD Bank’s annual consumer spending index has spotlighted the palpable impact on household budgets: around 80% of consumers have had to rethink and adjust their spending habits to navigate the escalating prices. Chris Fred, TD Bank’s head of credit cards and unsecured lending, makes it clear: “Under the current administration, consumers are unmistakably experiencing the squeeze of inflation and increasing interest rates.”

Inflation Disproportionate Impact on Lower-Income Families

One of the most unsettling aspects of the current economic climate under Biden is the disparate impact on lower-income households. A large chunk of their budget is allocated towards essential items like food, making them more vulnerable to price hikes. According to LendingClub, a worrying 78% of individuals who earn less than $50,000 a year and 65% of those earning between $50,000 and $100,000 have been living paycheck to paycheck as of July.

Escalating Financial Stress and the Ripple Effect

Moreover, a CNBC Your Money Financial Confidence Survey conducted in March reveals the psychological toll of the ongoing financial crisis. Roughly 70% of Americans report feeling stressed about their financial circumstances. Inflation and soaring interest rates, unmitigated by effective policies from the Biden administration, are primarily to blame.

The lack of a financial safety net makes the situation even direr. Only 45% of American adults reported having an emergency fund. Of those, approximately 26% have less than $5,000 saved, leaving them highly vulnerable to unexpected financial blows.


The data is abundantly clear: the financial strain on Americans, exacerbated by persistent inflation and a series of interest rate hikes, shows no signs of abating under the current administration. While marginal improvements in inflation rates offer a glimmer of hope, these are far from sufficient to alleviate the overarching financial stress gripping households across the country. Biden’s policy measures, or the lack thereof, appear to be directly contributing to this state of financial precarity, necessitating a serious reconsideration of the administration’s approach to economic challenges.


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