President Joe Biden faced backlash Tuesday afternoon for celebrating the passage of his so-called “Inflation Reduction Act,” which experts say will have little to no impact on reducing inflation, while the latest Consumer Price Index (CPI) showed today that inflation rose in August compared to last year and while the stock market tanked.
Biden claimed that the bill was the “single most important legislation passed in the Congress to combat inflation and one of the most significant laws in our nation’s history.”
“We’re going to fight for environmental justice and create clean energy jobs and apprentices and front-line fence communities that have been smothered by the legacy of pollution,” Biden added.
The Consumer Price Index (CPI) rose 8.3% between August 2021 and August 2022, according to a Tuesday report from the Bureau of Labor Statistics. Month-over-month prices for food, shelter, and medical services continued to tick upward, producing a 0.1% overall price increase from July. Economists had expected headline inflation to fall 0.1%. Prices for food at home — a category that includes grocery store or supermarket food purchases — increased 0.7% from the previous month. Meanwhile, prices for natural gas and electricity rose 3.5% and 1.5%, respectively.
“Today’s CPI report confirms that the US has a serious inflation problem,” economist Larry Summers, a Democrat, tweeted. “Median inflation used to be a favorite indicator for team transitory. This month it was at its highest ever reading.”
Stocks plummeted on Tuesday afternoon following the disastrous inflation report, with the Dow Jones Industrial Average dropping 1,276 points, nearly 4%, according to CNBC, which further noted, “The S&P 500 dropped 4.32% to 3,932.69, and the Nasdaq Composite sank 5.16% to end the day at 11,633.57.” It was the worst day the stock market has faced since the early days of the pandemic.
House Minority Leader Kevin McCarthy (R-CA) slammed Biden by comparing economic realities that many Americans are facing to Biden celebrating.
“Your grocery bill has never been higher. Joe Biden is celebrating,” McCarthy tweeted. “Your paycheck is being reduced by inflation. Joe Biden is celebrating. You can’t afford a home, and your retirement is in the tank. Joe Biden is celebrating. Democrats have no plan to help you and your family.”
Your grocery bill has never been higher. Joe Biden is celebrating.
Your paycheck is being reduced by inflation. Joe Biden is celebrating.
You can’t afford a home, and your retirement is in the tank. Joe Biden is celebrating.
Democrats have no plan to help you and your family. pic.twitter.com/TsQfz4Y1re
— Kevin McCarthy (@GOPLeader) September 13, 2022
“Will never be able to get over the image of Joe Biden speaking about how he singlehandedly beat inflation as the stock market tanks over 1,200 points on live television due to inflation,” political operative Greg Price wrote on Twitter. “An all time moment in the history of American presidents.”
Will never be able to get over the image of Joe Biden speaking about how he singlehandedly beat inflation as the stock market tanks over 1,200 points on live television due to inflation.
An all time moment in the history of American presidents. pic.twitter.com/agULMywRSL
— Greg Price (@greg_price11) September 13, 2022
“There are over 60,000,000 401K plan participants in the US,” political strategist Arthur Schwartz tweeted. “They all got clobbered today.”
Ben Williamson, Executive Director Freedom First PAC, tweeted: “Quite a split screen… Biden congratulating himself on the issue of inflation as the market tanks 1300 points partly due to today’s terrible inflation numbers”
Ben Zeisloft contributed to this report.