Donald Trump has seized upon President Joe Biden’s administration following a report that March’s consumer price index surpassed expectations, potentially signaling a resurgence of inflation and dampening prospects of near-term interest rate cuts by the Federal Reserve.
In a Truth Social post, the former president exclaimed, “INFLATION is BACK—and RAGING!”, criticizing the Fed’s ability to effectively lower interest rates and attributing the situation to support for Biden.
The consumer price index increased by 0.4% in March, slightly exceeding economists’ projections of 0.3%, resulting in a year-over-year rise of 3.5%, higher than the anticipated 3.4%.
The consistent trend of higher-than-expected CPI figures since November could pose challenges for Biden as the economy takes center stage in the lead-up to the 2024 election.
Biden responded to the CPI report by urging corporations, including grocery retailers, to utilize their record profits to lower prices. He also accused congressional Republicans of favoring tax cuts for the wealthy and big corporations, while blaming them for contributing to rising costs of living.
Despite positive indicators such as gross domestic product and employment rates, persistent inflation and a substantial budget deficit remain significant concerns for the White House and Biden’s re-election campaign. Trump has capitalized on these issues to amplify his criticisms of the current administration.
Polls suggest that Americans hold a favorable view of the economy during Trump’s tenure and disapprove of Biden’s economic policies.
