Biden says economic strategy working after inflation rises to 40-year high and oil prices skyrocket
The Federal Reserve says it will raise interest rates to combat inflation
President Biden on Monday touted his administration's achievements in improving the economy, but noticeably failed to address key developments that are biting into the pocketbooks of many Americans.
"Our economic strategy has worked – and it’s still working," Biden wrote in a tweet.
He claimed that 6.7 million jobs were created in 2021, unemployment is down nearly 4%, the economy has grown 5.7% and the deficit was reduced last year by $360 billion.
While some Twitter users praised Biden, others were critical of his stewardship of the economy, pointing to the highest inflation levels in 40 years and skyrocketing gas prices.
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The Labor Department released a report earlier this month showing that consumer inflation, propelled by surging costs for gas, food and housing, jumped nearly 8% over the year – the sharpest spike since 1982.
Housing costs, which make up about a third of the government’s consumer price index, have risen sharply as well.
Meanwhile, the national average price for a gallon of regular gasoline reached $4.33 a gallon last week. Even though the price dipped slightly over the weekend, signs of longer-term relief are still hard to find. Drivers were paying $2.88 a gallon on average a year ago at this time. Biden canceled the Keystone XL pipeline via executive order, and paused oil and gas leasing on federal lands, and oil prices rose steadily afterward.
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Federal Reserve Chairman Jerome Powell said Monday that the Federal Reserve would raise its benchmark short-term interest rate faster than expected, and high enough to restrain growth and hiring to fight inflation.
The Associated Press contributed to this report.