Inflation Soars Under Biden, Trump Blames Administration
Donald Trump criticized Joe Biden on Thursday, claiming Biden has poorly managed the US economy and allowed inflation to soar, making these issues crucial for the upcoming November presidential election.
During a CNN debate in Atlanta, Trump said, “Biden has done a poor job. Inflation is killing our country. I handed him a country with no inflation. It was perfect. He ruined it.”
Biden countered, saying Trump “absolutely decimated” the economy when he was president. He stated that there was no inflation when he took office because the economy was in bad shape, but his administration has since created millions of jobs, including for minority communities.
A recent Gallup poll shows that inflation or the cost of living has been the top financial problem for American families over the past three years. Another Gallup poll revealed that 46% of Americans trust Trump to handle the economy, while only 38% trust Biden.
US consumer inflation surged after Biden became president, reaching a multi-decade high in 2022, driven by post-pandemic supply issues and Russia’s invasion of Ukraine. In response, the Federal Reserve raised interest rates significantly to cool the economy, which has helped reduce inflation but it still remains above the target of two percent.
Since January 2021, when Biden took office, consumer prices have risen by about 20%, compared to less than six percent during the same period under Trump. Although the Federal Reserve is tasked with controlling inflation, it remains a challenging issue for Biden as he promotes his economic record ahead of the election.
The Fed predicts inflation will continue to decrease, potentially reaching the two percent target by 2026. However, the future path of inflation may depend on the outcome of the presidential election and which parties control Congress.
Trump has proposed extending tax cuts, restricting immigration, deporting illegal immigrants, and imposing tariffs on imports if he wins the election. Economists from JP Morgan warn that these policies could increase inflation by raising prices, pushing up wages, and increasing national debt.
Currently, a Republican-controlled House, Senate, and White House seems unlikely, according to Oxford Economics lead US economist Bernard Yaros. If Biden is reelected but faces a divided government, the potential for significant economic impact from fiscal policy is limited. Similarly, if Trump returns to the White House with a divided government, he will face challenges in implementing his fiscal agenda.
