Inflation hit 7.5% for the 12 months ending in January, the highest rate since 1982, according to a report from the Washington Examiner.
The report quoted the Bureau of Labor Statistics which said Thursday inflation rose throughout 2021 and early 2022, hovering around 5% before surging in recent months as the Biden administration policies and practices took full effect.
The report noted, “Too-high inflation has damaged President Joe Biden’s ability to pass his spending agenda, given that some centrist lawmakers are uneasy with funneling more money into the economy while prices are rising so dramatically.”
The surge in costs for consumers was one key to Sen. Joe Manchin’s resistance to adopting Biden’s massive trillion-dollar spending spree on social and green programs, for example.
The report explained the Federal Reserve now is scheduling interest rate hikes to address higher prices.
The last time the Fed increased interest rates was in 2018, “after which it began incrementally reducing rates. In 2020, central bank officials dropped the federal funds rate to near-zero at outset of the COVID-19 pandemic and has kept them at that level since then,” the report said.
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