Biden says economy has worked, but inflation still biting

Biden says economy has worked, but inflation still biting

President Biden said on Monday that his administration has succeeded in improving the economy, but he didn't address key developments that are biting into the pocketbooks of many Americans.

Biden wrote in a tweet that his economic strategy had worked and it is still working.

In 2021 he claimed that 6.7 million jobs were created, unemployment is down nearly 4%, the economy has grown 5.7% and the deficit was reduced by $360 billion last year.

Consumer inflation, boosted by the surge in gas, food and housing costs, jumped nearly 8% over the year's biggest spike since 1982, according to a report by the Labor Department earlier this month.

The consumer price index, which makes up about a third of the government's housing costs, has risen sharply as well.

The national average price for a gallon of regular gasoline reached $4.33 a gallon last week. There are still signs of long-term relief still to be found, even though the price dipped slightly over the weekend. The average price for drivers was $2.88 a gallon a year ago. Biden canceled the Keystone XL pipeline via executive order, paused oil and gas leasing on federal lands, and oil prices went up steadily afterward.

Federal Reserve Chairman Jerome Powell said on Monday that the Federal Reserve would raise its benchmark short-term interest rate faster than expected, and it would be high enough to restrain growth and hire to fight inflation.