Joe Biden’s record as President has been abysmal.
That has not stopped Democrats and their media allies from whistling past the graveyard.
But this jaw-dropping report just sent Joe Biden’s entire “Bidenomics” narrative down the toilet.
Inflation hit a 40-year-high on President Joe Biden’s watch in large part due to the reckless spending he and his fellow ruling class elites hoisted upon in an already overheated economy.
Instead of reducing spending, Biden spent even more with the absurdly titled Inflation Reduction Act, which only threw more gasoline on the fire.
The Federal Reserve has steadily raised interest rates in order to supposedly cool the rampant rise in inflation they helped create.
The rate at which inflation is increasing has slowed slightly, but it is still increasing at a rate above what is typical while prices remain exceedingly high.
“Bidenomics”
Biden and his regime have been lying about the economy and touting so-called “Bidenomics” as the reason the rate at which inflation is increasing has slowed slightly, but that narrative just went belly-up in light of the latest inflation report.
“Surging gas prices and sky-high mortgages and rent sent inflation rising more than expected in March, adding to Americans’ prolonged and painful battle with high costs,” CNN reported. “That could force the Federal Reserve to keep its punishing rates higher for longer. US consumer prices picked up again last month, vaulting to a 3.5% increase for the 12 months ended in March, according to the latest Consumer Price Index data released Wednesday by the Bureau of Labor Statistics. That’s up considerably from February’s 3.2% rate and marks the highest annual gain in the past six months.”
The Fed will certainly continue to raise interest rates to supposedly “solve” a problem they helped create, which will put pressure on the labor market and disincentivize new business ventures.
Dow Jones pain
As a result, the stock market also took a tumble over fears of enduring inflation.
CNN added that “US stocks fell sharply Wednesday after inflation data for March came in higher than expected. The blue-chip Dow closed 422 points, or 1.1% lower. The S&P 500 lost 1% and the tech-heavy Nasdaq Composite fell by 0.8%.”
“Today’s crucial CPI print has likely sealed the fate for the June [Fed] meeting with a cut now very unlikely,” Seema Shah, Chief Global Strategist at Principal Asset Management, explained. “Even if inflation were to cool next month to a more comfortable reading, there is likely sufficient caution within the Fed now to mean that a July cut may also be a stretch, by which point the US election will begin to intrude with Fed decision making.”
In other words, if Biden was hoping for a rate cut to artificially stimulate the economy before the November election, he is out of luck.
The Federal Reserve’s unilateral decision to lower interest rates to historic lows in order to artificially stimulate the economy under former President Barack Obama created another bubble that could burst at any moment.
A tightening of the money supply is a necessary step at this juncture, but no politician or unelected bureaucrat inside the Federal Reserve wants to be the one holding the bag.
