On Wednesday, Federal Reserve Chairman Jerome Powell deviated from President Biden’s repeated attempts to attribute the biggest inflation in forty years to Russian President Vladimir Putin’s invasion of Ukraine.
Prior to the Russian invasion of Ukraine on February 24, which raised food and energy costs globally, Powell, who was just approved last month to a second term as chairman, told the Senate Banking Committee that inflation was high.
Powell made the comment during a committee hearing after Sen. Bill Hagerty (R-Tenn.) explained how inflation increased into 2021.
“I realize there are a number of factors that play a role in those historic inflation that we’re experiencing — supply chain disruptions, regulations that constrain supply, we’ve got rising inflation expectations and excessive fiscal spending, but the problem hasn’t sprung out of nowhere,” said Hagerty.
“In January of 2021, inflation was at 1.4%. By December of 2021, it had risen to 7% — a fivefold increase. Now, since the war in Ukraine began in late February, the rate of inflation has risen incrementally another 1.6% to a current level of 8.6%. So again, from 7% to 8.6%,” Hagerty continued.
He continued by saying that the Biden administration seemed to be trying to shift the blame, and that only this past Sunday, false information about Putin’s invasion of Ukraine being the main cause of inflation was distributed.
The White House has been attempting for months to blame Putin for the highest inflation rate since 1981.
The White House has been attempting for months to blame Putin for the highest inflation rate since 1981.
Even though the majority of the yearly increase in prices was unconnected, Powell claimed that the war in Ukraine had a definite impact on fuel and food costs.
In the meanwhile, the Federal Reserve is raising interest rates in an effort to control inflation.
Republicans, moderate Democrats, Jeff Bezos, owner of Amazon/Washington Post, and — on at least one occasion — Biden himself have claimed that significant government expenditure, such as last year’s $1.9 trillion American Rescue Plan Act, contributed to inflation.
