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Prices rose 6.8% in November compared to November last year. This unbridled inflation is a problem for the Biden administration.
With our correspondent in Washington, Guillaume Naudin
Unemployment is falling, wages are rising, the recovery is strong, the stock market is doing well, yes, but prices are rising. The White House may regret it, it is what holds the attention. They are rising, but they are already rising less quickly, explains Joe Biden in a press release. He stresses that inflationary pressure is global and that it is due to disruptions in supply chains. He observes that gasoline prices, the most symbolic and the most watched, have started to fall.
The White House is therefore hoping that the peak has passed, but Central Bank boss Jerome Powell admitted a few days ago that inflation is not transient. The Fed should therefore adapt its monetary policy to make it less accommodating in the coming months and perhaps at its next meeting next week, which could weaken the recovery.
Meanwhile, Joe Biden calls for its social and climate spending plan to be adopted to lower the cost of living for American families. The Republican senators denounce them trillions of dollars of expenses which will on the contrary increase the inflationary pressure. Some Democrats think so. They are slowing down the adoption of the plan, even if it means giving the president headaches.
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