A day after the last consumer price index report before November’s midterm elections showed worse-than-expected inflation, President Joe Biden warned that if Republicans win, prices will go up.
Biden was speaking at a community college in Irvine, California, during a swing out west to promote administration initiatives and Democratic candidates. The White House billed it as a speech about “lowering costs for American families,” and Biden touted the Inflation Reduction Act, the spending bill the president signed into law.
“If Republicans take control, the prices are going to go up,” Biden said Friday, arguing GOP lawmakers would claw back the benefits from such laws.
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Biden has been emphasizing the prescription drug cost savings. White House chief of staff Ron Klain has been tweeting about Medicare premiums going down while Social Security payments go up.
But the strategy of blaming Republicans for future high prices after inflation spiked to a 41-year high under Biden is new.
“I just couldn’t disagree more with my Republican friends who say the biggest problem on our economy right now is that working folks are making too much money,” the president stated. “Workers are making too much money, and too many people are working. Too many jobs are being filled. I think that’s a bunch — as we already said — a bunch of malarkey.”
Yearly inflation ending in September registered 8.2%, according to the September report published by the Bureau of Labor Statistics. Core inflation, which factors out energy and food prices, rose to 6.6%, the highest mark since 1982. Both exceeded expectations.
There have been two worse-than-expected inflation reports since Biden signed the Inflation Reduction Act, which he warned on both Thursday and Friday Republicans would try to repeal if given congressional majorities.
“The Inflation Reduction Act did a lot of things,” Biden said in California, citing the climate spending in the reconciliation bill.
Rep. Katie Porter (D-CA), who is locked in a competitive reelection race, was with Biden at the event.
Inflation had showed some signs of cresting at the end of the summer, but it is still running hot despite aggressive interest rate hikes by the Federal Reserve. Gas prices have also begun ticking back up.
Biden has predicted the U.S. will avoid a recession while fighting inflation, though he conceded a “slight” one is possible. The last GDP reports have shown the economy contracting, but the labor market remains strong.
Republicans have blamed Biden’s spending, especially the $1.9 trillion American Rescue Plan passed after COVID-19 lockdown reopenings and trillions of dollars of stimulus spending under the previous administration, for contributing to high inflation. The White House has argued various government benefits can offset the higher costs.
“Americans are squeezed by the cost of living: That’s been true for years, and they didn’t need today’s report to tell them that,” Biden said in a statement after the latest report came out. “It’s a key reason I ran for President. Working to give middle-class families some breathing room in dealing with their costs is critical.”
But he also said his spending would help the problem rather than make it worse, saying “my policies — that Democrats delivered — directly tackles price pressures we saw in today’s report, like healthcare.”
“The Inflation Reduction Act locks in lower healthcare premiums for 13 million people, lowers seniors’ prescription drug prices, and caps their out-of-pocket expenses for prescription drugs at the pharmacy at $2,000 per year,” Biden said. “The Inflation Reduction Act will also lower families’ energy costs in the months ahead.”
“Republicans in Congress’s No. 1 priority is repealing the Inflation Reduction Act,” he added. “That’s the exact wrong thing to do in this moment. If Republicans take control of Congress, everyday costs will go up, not down.”
A White House celebration of the Inflation Reduction Act took place last month as stock markets were tumbling in response to the consumer price index.
Democrats are defending small majorities in Congress, including a 50-50 Senate they only control thanks to Vice President Kamala Harris’s tiebreaking vote. Biden has repeatedly argued inflation is coming under control, though polls still show it is a top voter concern.
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Biden’s economic approval stands at 39%, according to the RealClearPolitics polling average. That’s lower than his overall job approval rating.
The president was headed to Portland, Oregon, afterward.
