Staff Reports
In 1992, a Democratic political strategist made a wise observation about the economy, and now, the same truth applies to Joe Biden’s presidency. The economy is struggling, regardless of what Biden’s supporters say about it.
On Tuesday, Federal Reserve Chair Jerome Powell signaled that high inflation rates will likely postpone interest rate cuts until later this year. This means that the high interest rates that make it difficult for people to buy homes and cars will remain a challenge for the foreseeable future.
Fed's Powell: Elevated inflation will likely delay rate cuts this year https://t.co/nu2U5oboDX
— KGW News (@KGWNews) April 17, 2024
Powell also stated that the Federal Reserve may not carry out the three anticipated quarter-point reductions in interest rates. He emphasized the need for caution and cited ongoing economic and job market growth, but the average person doesn’t feel the same optimism when they face rising costs at the grocery store and gas station.
Despite claims from supporters that inflation rates are decreasing, prices are still going up, and Powell’s remarks indicate that the Federal Reserve has not yet gained control over inflation. The reality of the struggling economy is at odds with the Biden administration’s public messaging about a thriving economy. People are feeling the pinch of rising prices, and statistics support their lived experiences.
For example, gas prices have risen by 14 percent this year, and eviction rates have spiked by 78.6 percent since 2021. These statistics confirm what people are experiencing firsthand—Democrats may try to paint a different picture, but reality speaks for itself.
The impact of high interest rates ripples through the entire economy, and trying to convince people otherwise through optimistic rhetoric may not bode well for Biden’s chances of re-election. If the reality of the struggling economy is not acknowledged, it could undermine Biden’s bid for re-election in 2024.
