Reagan Economist Blasts Biden Following Inflation News: ‘A Catastrophic Economy’
'This is not even a catch-up of where we were before'
Art Laffer, a member of Ronald Reagan’s Economic Policy Advisory Board, reacted to the new CPI number at 8.6% by blasting President Joe Biden’s leadership.
During an interview with Maria Bartiromo on "Mornings with Maria," Laffer stated that the economy was not in recovery.
This was the highest number since 1981.
Prices on everything went up last month led by Joe Biden’s record energy prices.
Joe Biden’s May inflation numbers came out higher than expected at 8.6% — the highest number in 40 years.
“This is not a recovery… Total employment today is 800,000 lower than it was in 2020,” he said.
“This is not even a catch-up of where we were before," he added.
“If you take the trendline from February 2020 on up we’re 5 million jobs short from where we should be had we just been on that trendline,” he added.
“This is a catastrophic economy,” he continued.
“Whoever wrote that piece for Biden in the Wall Street Journal doesn’t know straightup from siccum.”
As Neon Nettle reported:
The Federal Reserve announced in March that it would raise its interest rate target by a quarter of a percentage point, the first-rate hike since 2018, in an effort to rein in the higher prices, although some economists and many Republicans say the central bank should have moved sooner to reverse its pandemic emergency measures
The average price of gas in the United States rose to a record high on Wednesday of $4.96 a gallon, according to AAA.
There are also concerns that the Fed’s aggressive action to hike interest rates could plunge the economy into a recession, a prospect that also doesn’t bode well for Biden and Democrats who have been running on the strong labor market and country’s ultralow unemployment.
There are still some positive aspects of the economy that will bolster the Fed in its resolve to keep hiking interest rates.
The economy beat expectations and added 390,000 jobs last month. Additionally, the country’s unemployment rate remained at 3.6%, an ultralow level that is just about where it was at right before the pandemic hit the economy more than two years ago.
May was the first month that has reflected both rate hikes that the central bank has conducted, and the fact that payrolls came in higher than forecast gives the Fed ammo to keep pushing rates ever higher, especially after several previous months of positive job gains.