Joe Biden has spent months celebrating that he has managed to drive inflation to “zero.”
But now, new data is showing that inflation is making an ugly return.
And now, the Federal Reserve just delivered one devastating update about inflation that left Joe Biden reeling.
After taking an early victory lap and claiming that he has managed to drive inflation to “zero” last year, Joe Biden is no longer celebrating.
That’s because inflation is on its way back, and new data from the Federal Reserve shows that the problem simply is not going away.
This comes in spite of some of the largest interest rate hikes in modern history, as the Federal Reserve has tried to drive up interest rates from near zero to over 5% in less than a year.
CNBC reports, “A measure the Federal Reserve watches closely to gauge inflation rose more than expected in January, indicating the central bank has more work to do to bring down prices.
The personal consumption expenditures price index excluding food and energy increased 0.6% for the month, and was up 4.7% from a year ago, the Commerce Department reported Friday. Wall Street had been expecting respective readings of 0.5% and 4.4%. The core PCE gains were 0.4% and 4.6% in December.”
The specter of inflation making an ugly return now looms over Washington, D.C., which has done everything in its power to make this crisis even worse since Joe Biden has taken office.
That is because under Biden’s watch, the Federal government has spent trillions upon trillions of dollars in barely two years, driving the inflationary crisis even higher at the same time that the Federal Reserve is trying to bring it under control.
And with the Federal government still spending trillions of dollars every year that it does not have, that money has to be borrowed, making the problem even worse.
Since inflation takes time to show up in the economy, it is little surprise to see it roaring back about a year after Biden’s latest series of multi-trillion dollar bills were signed into law.
And this means that the battle to get inflation under control will likely drag on much longer than anyone wants.
“Consumer spending also rose more than expected as prices increased, jumping 1.8% for the month vs. the estimate for 1.4%. Adjusted for inflation, prices rose 1.1%,” adds CNBC.
“All of the numbers suggest inflation accelerated to start the new year, putting the Fed in a position where it likely will continue to raise interest rates. The central bank has pushed benchmark rates up by 4.5 percentage points since March 2022 as inflation hit its highest level in some 41 years.”
At this point, it is increasingly likely that the Federal Reserve will be forced to increase interest rates throughout 2023, and that the final rate will reach well over 5% before inflation can be fully defeated.
And this means that Joe Biden is helping to inch America closer and closer to a recession as his reckless spending policies push the country’s fiscal situation over a cliff.