In an interview this Wednesday, US President Joe Biden got to the heart of the main issue, inflation.
Joe Biden on inflation
In fact, according to reports, Biden’s position is that the Fed will act as a shield to inflation which despite having grown tremendously in the last month (7%) will be a disease that we will soon extinguish. Biden has a vision for America: it will be the engine of the future of the planet, a nation that will generate jobs at record rates as no state has ever done until now.
The other side of things
For Biden, the growth in the cost of goods and services will soon cease at the hands of the central bank. It is all due to the advent of the Coronavirus tsunami and all its variants.
Economist Peter Schiff is not of the same opinion and he believes that the truth is different and that the president has not been completely sincere.
According to the economist, the Fed can be the sword that fights inflation, but the real shield are the American citizens and the companies of this great nation that every day are dealing with high prices, increases in electricity, water, gas, gasoline, rents and raw materials are putting the country on its knees. With dignity, the people are reacting by gritting their teeth, and now these sacrifices must be rewarded with a stabilization of prices and this is bread for the teeth of the Fed.
Schiff then went on to kick things up a notch by declaring:
“The President of the United States of America has failed to keep up with the American people on inflation”.
And again:
“It’s a tax that pays for government spending. If people want less inflation, the government has to spend less so the Fed can print less”.
High prices and the report
In this regard, Ryan Stephens author of the blog “Dialed in Men” also stated:
“The last 18 months have been hell. All paper products have gone up 55%”.
He added:
“A box of bacon before the pandemic sold for $75 while now it sells for $187, a box of chicken used to cost $35 and now it costs $90 while 35 pounds of frying oil has gone from $20 to $43.”
This has a huge spillover effect on US businesses and purchasing power, and Senator Rand Paul R-Ky is of the same opinion, who recently backed this up with a report highlighting how the “hidden tax” (inflation) would only get worse.
In short, Biden is trying to throw water on the fire but the fire is there and perhaps it will not be quenched by throwing more firewood.
Source: https://en.cryptonomist.ch/2022/01/21/for-joe-biden-the-fed-will-act-as-a-shield-for-inflation/