What Biden Can Do to Lower Inflation — but Stubbornly Refuses To
President Biden continues to support his Build Back Better initiative.
Washington’s latest inflation report shows prices rising by 8.3% over the past year and core inflation (which excludes volatile food and energy prices) continuing to accelerate. Real wages have fallen 2.7%. Moody’s Analytics and Penn-Wharton estimate that inflation is costing the average household $300 per month. A Harris poll reveals that 84% of Americans are cutting back on key purchases. And the problem is deepening every month.
The Federal Reserve must lead the charge of reducing inflation. After dumping $4.8 trillion into the economy during the recession and continuing to buy mortgage-backed securities as recently as two months ago, the Fed is finally taking inflation seriously by raising rates and reducing its balance sheet. This will be painful but necessary.
Continue reading the entire piece here at the New York Post
Brian M. Riedl is a senior fellow at the Manhattan Institute. Follow him on Twitter here.
This piece originally appeared in New York Post