Biden acknowledges inflation ‘sapping the strength of a lot of families’ as economists prepare for Fed to raise interest rates

Speaking to the AFL-CIO convention in Philadelphia, Biden sought to reassure the American people that tackling the worst inflation the nation has seen in decades remains a top priority for him and his administration. The speech came a day before the Federal Reserve could raise interest rates as much as three-quarters of a percentage point as it attempts to get inflation under control. The issue has been bedeviling Biden and his White House for months after they downplayed inflation concerns last year.

The President acknowledged inflation is “sapping the strength of a lot of families,” as the price of gas and food skyrockets — an issue being made worse by Russia’s invasion of Ukraine. But even as he sought to emphasize his administration is fully focused on the problem, the President conceded he is left without many options to fight the price hikes, particularly in a narrowly divided Senate that has blocked the bulk of Biden’s domestic agenda.

“The problem is Republicans in Congress are doing everything they can to stop my plans to bring down costs on ordinary families. That’s why my plan is not finished and why the results aren’t finished either,” Biden said.

The President continued, “Jobs are back but prices are still too high. Covid is down but gas prices are up. Our work isn’t done. But here’s the deal: America still has a choice to make. A choice between a government by the few — for the few — or a government for all of us. Democracy for all of us. An economy where all of us have a fair shot and a chance to earn our place in the economy.”