Staff Reports
Another inflation metric has once again debunked President Joe Biden’s claims that inflation is under control. The Personal Consumption Expenditures (PCE) price index for July showed an increase of 3.3 percent year-over-year, further perpetuating the soaring prices that Americans are facing. The Core PCE inflation, which excludes food and energy prices, increased by 4.2 percent in the last year. These numbers clearly indicate that prices are moving in the wrong direction, and Joe Biden’s promises of lower inflation are nothing but wishful thinking.
The PCE price index, being the Federal Reserve’s preferred inflation gauge, holds significant weight when it comes to determining the need for interest rate hikes. And since Biden took office, prices have shot up by more than 16 percent. As a result, it is highly likely that the Federal Open Market Committee (FOMC) will once again increase interest rates. This continual rise in interest rates has already caused havoc in the housing market, with buyers unable to afford homes, sellers unable to make profitable sales, and new homeowners trapped in high-rate mortgages with no relief in sight.
Despite Biden Claiming 'All Is Well,' We Just Got Really Bad Economic News https://t.co/uDI9NEcGTT
— Carole Klewicki (@KlewickiCarole) August 31, 2023
Alfredo Ortiz, President and CEO of Job Creators Network, pointed out the detrimental effects of rising inflation on American living standards and small businesses. With the PCE inflation indicator consistently surpassing the Federal Reserve’s target rate, the Fed will have no choice but to raise interest rates further. This will only worsen the credit crisis already faced by small businesses, thanks to the inflation caused by Biden’s policies. Ordinary Americans and small businesses are being hit hard by the combination of skyrocketing prices and higher borrowing costs, all thanks to what Ortiz aptly refers to as “Bidenflation.”
