WASHINGTON, June 12 ― Red-hot US inflation is showing few signs of cooling, putting the Federal Reserve on track to continue its aggressive interest rate increases to help cool high prices that are challenging Joe Biden’s presidency.
The US central bank already had signaled plans for more big increases in the benchmark borrowing rate this week and next month, but chances are rising that the Fed might have to be even more aggressive ― which increases the risk the economy might tip into a recession. Energy has soared 34.6 per cent over the past year, the fastest since September 2005, while food jumped 10.1 per cent, and the cost of fuel oil more than doubled, jumping 106.7 per cent, the largest increase in the history of CPI, which dates to 1935.
Biden, who blames “Putin’s Price Hike” for the acceleration in inflation, said Washington “must do more ― and quickly ― to get prices down here in the United States.” Hoping to avoid a devastating setback in November elections that could return control of the legislature to opposition Republicans, Biden has urged Congress to approve legislation to bring down costs of key products such as medicines and services such as shipping to soften the blow for US consumers.