With rising prices, most Americans see inflation as the biggest problem the country is facing, according to a Pew Research study. This is a separate warning to the world economy, given that the United States is still one of the references to the world economy.
Based on a survey of 5,074 American adults in April and May 2022, about 70% of inflation is a “very big problem” for the country, followed by about 55% of medical expenses and violent crimes. It states. A policy tie-up with Republicans and 84% of right-wing independents saying inflation is paramount. In contrast, 57% of Democrats and left-wing independents were most concerned about rising prices.
The results are obtained when inflation remains close to its 40-year high and the annual growth rate in April is 8.3%, slightly lower than the 8.5% growth rate reported in March. Still, according to Moody’s Analytics analysis, US households spend more than $ 341 a month a year ago.
Sustained high inflation prompted positive action from the Federal Reserve Board, which approved a half-point rate hike in May after rising a quarter-point in March. This is the largest in 20 years. The central bank also plans to reduce bond holdings from June.
Federal Reserve Chair Jerome Powell said it cannot guarantee a so-called soft landing of the economy, aiming for 2% inflation while the labor market is strong. The central bank was criticized for not reacting early to inflation. Former Fed Chairman Ben Bernanke questioned the central bank’s delay in responding in an interview aired Monday on CNBC’s Squawk Box.
We still remember the 2008 global crisis that led to the closure of Lehman Brothers, one of America’s most trusted financial companies. The reason why people working in the White House still consider inflation to be a trivial issue to this day is still a mystery.
Meanwhile, President Joe Biden is also experiencing a recession from sustained inflation and will address this issue. The Twitter exchange between Biden and Amazon founder Jeff Bezos began on Friday, with the president saying, “Do you want to lower inflation? Bezos quotes Biden’s tweet to discuss raising corporate taxes. Is okay. ” Controlling inflation is very important.
Bezos further criticized the White House’s strategy in a tweet on Sunday, saying the US $ 1.9 trillion bailout plan signed last March helped boost inflation. He also commented on how difficult it is for poor families to raise prices.
Secretary of Transportation Pete Butigeg responded to Bezos’ criticism of the government’s inflation policy on CNBC’s squawk box on Monday. “The president’s economic theory will probably never resonate with millionaires for the simple reason that he asks them to pay a fair share,” he said.
“With proper public investment, we can tackle some of the things we know to contribute to inflationary pressure,” Buttigieg added. Whether you like it or not, the United States remains the standard of the world economy, so we all want White House leaders to address the real threat of current inflation levels.
If the United States can overcome this problem, it is undoubtedly hopeful that the rest of the world will overcome its economic problems.