Biden says latest inflation news shows that his plan is working
Haisten Willis
Video Embed
President Joe Biden released a statement Thursday morning saying that this week’s economic news indicates that his plan is working.
Inflation fell three-tenths of a percentage point to 6% annually in October, jobless claims dropped, and third-quarter GDP growth has been revised up to 2.9%. Biden said all of it points to the success of his economic approach.
INFLATION DECLINES TO 6% IN OCTOBER, ACCORDING TO KEY GAUGE WATCHED BY FED
“Today, we learned that inflation moderated and incomes grew in October, following yesterday’s news that our economy grew at an even stronger pace from July to September than we previously thought,” Biden said in the statement. “We are seeing initial signs that we are making progress in tackling inflation, even as we make the transition to more steady, stable economic growth.”
The decline in the personal consumption expenditures price index reported Thursday morning by the Bureau of Economic Analysis is a sign that inflationary pressures are abating in the face of the Federal Reserve’s campaign to slow price gains by raising inflation rates. Nevertheless, inflation is still running much faster than the central bank’s target and hurting household purchasing power.
Core personal consumption expenditure inflation, a measure of inflation that strips out energy and food prices and is generally less volatile, slowed two-tenths of a percentage point to a 5% year-over-year rate. The Fed’s target is a 2% rate.
Still, amid fears of a recession, the president pointed to the news as evidence the economy is stabilizing and may not go negative during the last two years of his first term.
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
“That’s good news for the American people, and further evidence that my economic plan is working,” Biden said. “It will take time to bring inflation back to normal, and there could be setbacks along the way, but the American people should have confidence that our plan to tackle inflation, without giving up all the historic economic gains American workers have achieved, is working.”