Trump admits the return of inflation, blames bidges

Trump admits the return of inflation, blames bidges

In an interview with Sean Hannity from Fox News, which was broadcast on Tuesday evening, President Donald Trump admitted that inflation increases again, which questions his election promise to reduce prices immediately after taking office. However, he blamed the exuberant editions of the bid administration.

Trump about inflation

"Inflation is back," said Trump. "I had nothing to do with it. These people led the country. They spent money like nobody did before." His statement applies: Consumer prices have risen significantly more than expected last month, especially due to the rising prices for fuel and eggs. January was the largest monthly increase since August 2023, and prices were 3 % higher in the year since June 2024.

responsibility for inflation

Trump is also right with the fact that he cannot take over much of responsibility for inflation; After all, his predecessor Joe Biden was 19 ½ of the 31 days covered in the current report in the Oval Office. However, the claim that bidges are responsible for inflation is controversial. Economists disagree on why inflation increases after Biden's office, in order to then fall back on almost normal values. The prices rose during bidens for the first year of office, and inflation reached a highlight in June 2022 with a 40-year high before it fell.

Trump's criticism of bidens politics

In the same program, Trump also seemed to attribute inflation bidet's advance into a "green new scam", although it remains unclear, whereby his accusation is precisely reluctant because a corresponding law was not adopted. "You got $ 9 trillion to throw it out of the window - $ 9 trillion and you invested it in the Green New Scam, that's what I call it," said Trump. "It is the greatest fraud in the history of the country."

fiscal measures and their effects

biden signed an infrastructure law that included green energy projects and cost more than $ 1 trillion, as well as a covid aid package that was a total of $ 3.4 trillion. Together, according to the Committee for a Responsible Federal Budget, these laws added about $ 5 trillions to the deficit in the first two years of his term. According to CRFB, the inflation reduction act from biden, which also included a combination of tax breaks and expenses

economic perspectives for inflation

Some economists, including the former chair of the Federal Reserve, Ben Bernanke, have partially blamed the extensive expenses for the overheating of the economy. "The US response to Covid-19 pandemic comprised a number of federal initiatives, in particular the Cares Act and the American Rescue Plan, which authorized a total of around $ 5 trillions in state expenditure," emphasized the authors of a report by the National Bureau of Economic Research. "These programs contributed to a strong demand for consumers and companies that consolidated the labor market and increased the pressure on wages and prices."

factors behind the price increases

However, the same report also points out that the price increases are also due to factors such as increased production costs due to demand for demand, the war in Ukraine and problems in the supply chain during the covid era. A report by the Bureau of Labor Statistics from January 2023 attributed the inflation to "volatility of energy prices, residues of work orders for goods and services due to supply chain problems due to covid-19 and price changes in the automotive industry".

The economic challenges remain

Inflation and the high prices are still a challenge. The prices persisted, while the bird flu had increased egg prices at the fastest pace in ten years. A decline in demand and sanctions against Russia and Iran continued to contribute to increasing fuel prices. The prices last month rose in all areas, not only in the volatile categories such as food and fuel. This will probably hinder the efforts of the Federal Reserve to reduce interest rates and keep the costs for loans for American consumers and home buyers high, which leads to continuing inflation printing through mortgages and rents.

Effects of Trump's trade measures

Another measure that will not reduce prices are Trump's tariffs. The increase in taxes to imports will ultimately burden American consumers who have to cover the costs because economists largely agree. This could negate the savings from its plans to reduce expenses, tax relief and to increase the funding licenses for fossil fuels. Therefore, bidges may have contributed to America's persistent inflation problem, but now it is Trump's problem, and his most prominent economic measures could still tighten the situation.