Jerome Powell Contradicts what Biden has been Saying as to Russia's Involvement in Inflation
“No, inflation was high before, certainly before the war in Ukraine broke out.”
Yesterday our old friend Jerome Powell said the war in Ukraine is NOT the primary cause of inflation. It isn’t even A PRIMARY cause. Many are scratching their head as this blatantly contradicts prior White House claims and messaging from President Biden.
Powell was presented with the question "given how inflation has escalated over the last 18 months, would you say that the war in Ukraine is the primary driver of inflation in America?"
He responded, “No, inflation was high before, certainly before the war in Ukraine broke out.”
You see what we are pointing out, right? This conflicts with what President Biden and then-White House Press Secretary Jen Psaki said sometime in April. Biden said “What people don't know is that 70% of the increase in inflation was the consequence of Putin’s price hike because of the impact on oil prices. 70%…”
However, the Washington Post’s analysis of the data found that he must have meant JUST ONE MONTH’S WORTH OF INFLATION DATA. This seems very off when compared to a year’s worth. The publication also admitted ordinary people would naturally assume Biden was referencing a year’s worth…
Psaki also added her own numbers in an effort to help Biden and the administration.
We know that 61% of [inflation] is driven by the price of... by energy costs, by Putin's invasion into Ukraine, and we need to continue to take every step that we can... make sure that the supply meets the demand out there."
At the Fed, we understand the hardship high inflation is causing. We are strongly committed to bringing inflation back down, and we are moving expeditiously to do so. We have both the tools we need and the resolve it will take to restore price stability on behalf of American families and businesses.
Jerome Powell told the Senate Committee.
At the end of the day, Powell acknowledges that a recession is possible, saying it’s “not our intended outcome at all, but it’s certainly a possibility, and frankly the events of the last few months around the world have made it more difficult for us to achieve what we want, which is 2% inflation and still a strong labor market."