Federal Reserve Chairman Jerome Powell on Wednesday contradicted President Joe Biden’s claims that the Russian invasion of Ukraine was the main driver behind soaring inflation in the U.S.
During a Senate Banking Committee hearing, Tennessee Senator Bill Hagerty got Powell to admit that inflation was high well before Russia invaded Ukraine on February 24.
“No inflation was high … certainly before the war in Ukraine broke out,” Powell said.
“I’m glad to hear you say that. The Biden administration seems to be intent on deflecting blame,” Hagerty said, noting the administration is actively spreading misinformation that Russian President Vladimir Putin’s invasion of Ukraine was the “biggest single driver of inflation.”
This comes as inflation hit a four-decade high of 8.6 percent in May, according to the Department of Labor.
Last April, Biden directed the blame toward Putin, claiming that the inflation is “largely” his fault.
“We have to talk about it because the American people think the reason for inflation is the government spending more money – simply not true,” the president said. “From the moment [Putin] put his over one hundred and fifty thousand troops on the Ukrainian border, the price of gasoline in January went up 75 cents and Putin began amassing troops along the border.”
Steven Rattner, a former counselor to the treasury secretary under former President Barack Obama, fired back at Biden for blaming Putin.
“Well, no. These are Feb #’s and only include small Russia effect. This is Biden’s inflation and he needs to own it,” Rattner tweeted, debunking the president’s claims that Russia’s military aggression towards Ukraine had anything to do with the rising prices in the U.S.
Meanwhile, Powell has sought to reassure the public that the Fed will raise interest rates high and fast enough to combat inflation. It recently raised rates by 0.25 percent or 25 basis points for the first time since 2018.
“Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures,” said the Federal Open Market Committee.
Americans have been suffering from financial strain recently, but thankfully, the Fed is doing something to ease our troubles, unlike Biden.
