President Joe Biden said yesterday that he expects the decline in inflation to begin this year, as he clarifies the situation with the problems that have arisen in the supply chains, stressing that his government is already providing assistance to address the shortages.
Biden’s remarks came as new data showed the biggest increase in consumer prices in 40 years.
The US president told NBC News that his government’s efforts to tackle the shortage of microcircuits that pushed up car prices last year are beginning to pay off.
Rising consumer prices “will begin to decline as the year progresses,” Biden said. “In the meantime, I will do everything in my power to address important issues that affect most people in their homes.”
Biden said earlier in the day at an event in Virginia that the provisions contained in the “Build Back Better” bill would help reduce prices for American families. The bill envisions spending about $ 1.7 trillion, as well as provisions for social spending and spending on climate change, while it is stagnant in Congress. Biden has stated that parts of the bill, not the whole, could be passed.
US stocks closed lower yesterday, following the release of consumer price data, which reinforced fears of a sharp rise in interest rates by the US Federal Reserve. Consumer prices in the previous twelve months and until January increased by 7.5%. This is the largest price increase since February 1982, according to the US Department of Labor.
Part of the bill mentioned above would authorize the federal government’s access to Medicare program that covers the elderly to negotiate drug prices. This is the first time such negotiations have taken place.
“The point is, if we can do the things I’m talking about now, it will reduce the cost to the average family,” Biden said.
Noting that the “Build Back Better” bill has already been passed by the House of Representatives, Biden noted: “Now we have to pass it through the Senate. We are close.”
“We can do even more to reduce the cost of prescribing drugs,” he added. “According to my proposal, the drug companies will talk about the unreasonable increase in prices.”
Democrats have a narrow majority in the Senate, with little room for maneuver, and Republicans have opposed the government’s ability to negotiate the cost of prescription drugs.
High inflation, as well as fatigue from the ongoing pandemic, have hit Biden’s popularity, raising concerns among Democrats, who risk losing control of both houses of Congress in the midterm elections in November.
SOURCE: ΑΠΕ-ΜΠΕ
Source: Capital
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