Democrats are racing to get ahead of high inflation as rising prices dampen an otherwise strong recovery.
The U.S. economy has steamed ahead of every other nation hit hard by the COVID-19 pandemic, powering through new variants and other pandemic-related constraints.
The unemployment rate dropped to 4.2 percent in November, the lowest level since February 2020, as the labor force expanded last month and wages rose 5 percent annually. Consumer spending and retail sales have also soared above pre-pandemic highs while rising corporate profits have powered another record-breaking rally in the stock market.
But steadily rising inflation — driven in part by the speed of the rebound — has made it tough for Democrats to sell the recovery.
“If you look at most economic indicators, they’re really in a good place,” Rep. Cheri BustosCheryl (Cheri) Lea BustosPressley looking for whoever ‘borrowed’ her Mariah Carey Christmas album Congress needs to act on the social determinants of health Democrats brace for flood of retirements after Virginia rout MORE (Ill.), a swing district Democrat who will retire at the end of her current term, told The Hill at the Capitol on Thursday.
“But when you’re talking about pocketbook issues, when you’re going to fill up your gas tank and it’s costing you more, when you’re going to the grocery store and your pound of bacon costs a little bit more, people notice that stuff,” she continued.
Consumer prices rose 6.2 percent year over year in October, driven largely by surging food and energy prices, according to the Labor Department’s consumer price index (CPI). Economists expect the November CPI data, set to be released Friday, to show an even larger, 6.7 percent annual increase in consumer prices last month.
The steady rise of consumer prices has strained cash-strapped households and boosted political pressure on President BidenJoe BidenMan sentenced to nearly four years for running scam Trump, Biden PACs Dole in final column: ‘Too many of us have sacrificed too much’ Meadows says Trump’s blood oxygen level was dangerously low when he had COVID-19 MORE and Democrats with less than a year until the midterm elections. Republicans have repeatedly pointed to rising costs and have blamed Biden and Democrats for overheating the economy with the American Rescue Plan, the $1.9 trillion March stimulus bill passed with only Democratic votes, even as other wealthy nations with weaker recoveries also struggle with inflation.
“It’s the fiscal house that’s driving the question on inflation. That’s the deeply concerning part,” said Rep. Patrick McHenryPatrick Timothy McHenryPowell, Yellen say they underestimated inflation and supply snarls GOP beginning to jockey for post-election leadership slots Consumer bureau chief bashes FTC and pledges focus on tech giants, big firms MORE (N.C.), the top Republican on the…
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