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Joe Biden has continuously blamed recent soaring inflation on Vladimir Putin's invasion of Ukraine. Prior to the invasion, Biden put the blame on issues with the country's supply chain. With the release of September's consumer price index data on Wednesday, Biden is finally out of excuses according to former Obama White House and Harvard economist, Jason Furman.
In a Tweet posted on Thursday with new CPI price inflation data, Furman wrote, "These data obliterate the thesis that high core inflation in the spring and early summer was entirely or mostly passthrough from the Ukraine war." His comment comes as a blow to a struggling administration that all but refuses to admit that the country is facing an economic crisis amid 40-year high inflation.
Furman also tackled Biden's supply chain thesis noting that while goods inflation has dropped quite a bit since early last year, that inflation has now moved to the services sector and the core inflation rate has not changed.
Americans initially went along with the theory that issues with the supply chain were driving up inflation last year. Given that the world economy was coming back online after over a year of pandemic lockdowns, it made sense. But as the months turned to more than a year, Americans' patience with an incompetent administration and struggling Treasury have run out.
Treasury Secretary, Janet Yellen, is still insisting that Putin and a logistics problem are at fault for the crushing inflation. Yellen told CNBC in an interview Tuesday that "a series of shocks that virtually no one could have predicted, including Russia's invasion of Ukraine, that have pushed up prices and a series of supply challenges that most people did not anticipate, including me."
While an economy recovering from the pandemic and the goods inflation of last year did contribute to the beginning of the inflation, it has been worsened and drawn out by a combination of the Federal Reserve not raising interest rates enough, and the Biden administration's attempt to rescue Americans by overprinting money for a number of stimulus packages.
Homes and car prices are at record highs while gas prices have started to rise again after coming down in recent months. Inflation is spreading across the economy and with the Biden administration turning a blind eye to it, there seems to be no end in sight.
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