Former Kansas City Fed President Thomas Honig responded to Jerome Powell’s statement that the Fed is not ready to start cutting interest rates “coast to coast.”
President Biden will deliver his third State of the Union address Thursday night, trying to convince Americans he deserves another four years in office.
The high-profile speech came amid growing dissatisfaction among many households about the current state of the country. us economy and the persistent pain of high inflation.
Still, in his address to the nation, the president intends to allay those concerns by touting some of the positive economic gains made over the past year. A White House official told FOX Business that the president will also outline future efforts that continue to be needed to improve the lives of ordinary Americans.
As the Biden administration focuses on so-called “shrinkflation,” Biden will touch on cutting costs and giving Americans more “breathing room.” Reduce package size You can also sell some of your food while increasing the price or keeping the price the same. The White House this week launched a new task force aimed at tackling “unfair and illegal” corporate price-setting that Biden blamed for frustratingly high food prices.
Why are groceries still so expensive?
President Biden speaks during a meeting with the Competition Council at the State Dining Room at the White House on March 5, 2024 in Washington, DC. (Photo by Nathan Howard/Getty Images/Getty Images)
In a shrinkflation ad that ran during the Super Bowl in mid-February, Biden said, “As an ice cream lover, the thing that pisses me off the most is the shrinking size of ice cream cartons.” Despite this, prices have not decreased.” “That’s a rip-off.”
Biden to deliver State of the Union address on record date
of White House Although he praised the nearly steady annual decline in inflation, most economists believe this was not due to the president’s economic policies but to the Federal Reserve’s aggressive rate hike campaign and supply chain disruptions. I agree that this is due to resolution.
Inflation has fallen significantly from its peak of 9.1% in June 2022, but remains well above the Fed’s 2% target. Compared to the previous January 2021, the inflation crisis has begunthe price increased by a whopping 17.97%.
A woman shops for groceries at a supermarket in Monterey Park, California, on October 19, 2022. (Photo by Frederick J. Brown/AFP via Getty Images/Getty Images)
Food has become one of the most serious inflationary problems for Americans. According to the survey, more than two-thirds of voters say rising food prices have been hit hardest by inflation. investigation This is more than 50 percent higher than any other category, including gas, transportation, and housing costs.
Persistently high food prices are weighing on voters across the country, casting doubt on Mr. Biden’s claims that the economy is booming.
Consumers expecting immediate relief may be disappointed.
Wall Street is increasingly worried about the risk of 1970s-style stagflation
Chairman of the Federal Reserve System Jerome Powell In an interview with “60 Minutes” aired in early February, he said high prices could continue unless there is a severe recession.
Chairman Powell said, “Prices of some things will fall and prices of other things will rise. But I don’t expect the overall price level to fall. Unless the situation is extremely negative, the economic That won’t happen,” he said. “If you think about basic necessities like bread, milk, eggs, different types of meat, looking back, prices are significantly higher than before the pandemic.”
Wednesday, January 17, 2024, at the U.S. Capitol in Washington, DC. (Photographer: Julia Nickinson/Bloomberg via Getty Images/Getty Images)
In addition to discussing lower prices, Biden will also talk about lowering health insurance premiums and partnering with drug companies to lower the cost of prescription drugs, White House officials said.
Inflation Control Act Biden Signs in 2022 approved medicare For the first time, we negotiated prices for 20 drugs used by many Americans with diabetes, arthritis, and heart disease.
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In his speech, Biden outlined several new health policy proposals, including allowing Medicare to negotiate prices on at least 50 prescription drugs instead of 20, according to a fact sheet released by the White House on Wednesday. It has been shown that there are plans to do so.
“Medicare should not be limited to negotiating just 20 drugs a year. Instead, the president should ensure that Medicare covers key drugs that older adults depend on, such as those used to treat heart disease, cancer, and diabetes. ” read the fact sheet.
Biden is also expected to push for tax increases on America’s richest and largest corporations on Thursday night, part of which White House officials say is part of his plan to prioritize the middle class.
