In one of the more embarrassing and out-of-touch moments from the first months of the <a href="http://dailywire.com/topic/biden-administration">Biden administration</a>, the commander-in-chief boasted about saving Americans <a href="https://www.dailywire.com/news/biden-admin-brags-about-saving-americans-16-cents-on-july-4-food-our-economic-plan-is-working">a whopping $0.16</a> on their 2021 <a href="https://www.dailywire.com/topic/4th-of-july">Fourth of July</a> cookouts. Prices have since had another year to <a href="https://www.dailywire.com/topic/inflation">rise</a> — and like Americans trying to make ends meet, the White House can no longer afford to be so smug.
According to the <a href="https://www.fb.org/newsroom/cost-of-july-4th-cookout-17-higher-compared-to-year-ago">American Farm Bureau Federation</a> (AFBF), the average cost of a summer cookout for a party of 10 is currently $69.68 — a figure that rose 17% since last year. Prices for barbecue staples such as chicken breasts, pork chops, potato salad, lemonade, and hamburger buns are more elevated than last year.
“Despite higher food prices, the supply chain disruptions and inflation have made farm supplies more expensive; like consumers, farmers are price-takers not price-makers,” AFBF Chief Economist Roger Cryan explained. “Bottom line, in many cases the higher prices farmers are being paid aren’t covering the increase in their farm expenses. The cost of fuel is up and fertilizer prices have tripled.”
When President Biden’s <a href="https://twitter.com/WhiteHouse/status/1410709115333234691?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1410709115333234691%7Ctwgr%5E%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fwww.dailywire.com%2Fnews%2Fheres-why-bidens-0-16-cookout-tweet-is-pure-propaganda">original Fourth of July tweet</a> — which heralded a 5% drop in prices for vanilla ice cream, a 2% drop for lemonade, and a 1% drop for sliced cheese, among other supposed price savings — gained widespread mockery, year-over-year inflation was 5.3% and rising. As of last month, inflation was 8.6% — the <a href="https://www.dailywire.com/news/inflation-reaches-8-6-setting-new-four-decade-high">highest level</a> in four decades.
Since last year’s Fourth of July festivities, Russia initiated a war against Ukraine, leading to higher global energy prices. Gasoline on Independence Day 2021 was $3.12 per gallon — much higher than the $2.38 when Biden assumed the Oval Office, but not nearly as high as the <a href="https://www.dailywire.com/news/gas-prices-hit-grim-national-average-of-5-per-gallon">$5.00 per gallon</a> witnessed in June 2022, according to the U.S. <a href="https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&amp;s=EMM_EPMR_PTE_NUS_DPG&amp;f=W">Energy Information Administration</a>.
Worldwide food prices are also higher since Russia and Ukraine produce a combined 30% of the world’s traded wheat, according to the <a href="https://www.foodsecurityportal.org/node/1921">International Food Policy Research Institute</a>. Many nations in <a href="https://www.dailywire.com/news/asian-african-nations-face-famine-as-ukraine-crisis-hits-global-food-supply">Africa and Asia</a> are thus threatened by starvation as Russia <a href="https://www.dailywire.com/news/russia-is-blocking-ukraine-from-exporting-food-threatening-africa-with-starvation%C2%A0">blockades</a> Ukrainian exports.
“The increased cost of food and supplies is a very real concern in our country and across the globe,” AFBF President Zippy Duvall said. “U.S. food assistance programs and food banks help those who struggle to make ends meet here at home, but the story is much different around the globe as food insecurity skyrockets. The big impact of a single event in Ukraine shows how dependent the world is on stable, productive agriculture.”
In response to worsening inflationary pressures, President Biden has been <a href="https://www.dailywire.com/news/president-biden-blames-vladimir-putin-for-record-high-inflation">resistant</a> to taking responsibility. Instead, he has placed the blame on Russian President Vladimir Putin.
“Putin’s Price Hike hit hard in May here and around the world: high gas prices at the pump, energy, and food prices accounted for around half of the monthly price increases, and gas pump prices are up by $2 a gallon in many places since Russian troops began to threaten Ukraine,” Biden said in response to the most recent inflation report. “Even as we continue our work to defend freedom in Ukraine, we must do more — and quickly — to get prices down here in the United States.”

Woman doing BBQ Steaks on a flame grill.

Last Year, Biden Bragged About 16 Cents In Fourth Of July Cookout Savings. This Year, Prices Rose By Double Digits.

Prices For Fourth Of July Cookout Up 17% Since Last Year

4th of July

Biden Administration

Inflation

Pending <a href="http://dailywire.com/topic/housing">home sales</a> inched higher last month despite seeing declines for most of the past year.
The National Association of Realtors’ Pending Home Sales Index rose 0.7% in May — even as transactions fell year-over-year by 13.6%.
&#8220;Despite the small gain in pending sales from the prior month, the housing market is clearly undergoing a transition,&#8221; NAR Chief Economist Lawrence Yun said in a <a href="https://www.nar.realtor/newsroom/pending-home-sales-edge-higher-0-7-in-may">press release</a>. &#8220;Contract signings are down sizably from a year ago because of much higher mortgage rates.&#8221;
Indeed, the 30-year fixed rate mortgage <a href="https://www.dailywire.com/news/mortgage-rates-hit-highest-level-in-over-a-decade">began climbing</a> precipitously at the beginning of 2022, according to data from government-backed mortgage company <a href="https://fred.stlouisfed.org/series/MORTGAGE30US">Freddie Mac</a>. Beginning at slightly over 3% in January, the mortgage rate surpassed 5.75% earlier in June.
The rise in mortgage rates corresponds with the Federal Reserve <a href="https://www.axios.com/2022/05/18/fed-mortgage-portfolio">tapering</a> its aggressive monetary stimulus. In response to COVID-19 and the lockdown-induced <a href="http://dailywire.com/topic/recession">recession</a>, the central bank ramped up its purchase of <a href="https://www.dailywire.com/news/watch-powell-admits-that-fed-policies-are-behind-high-home-prices">mortgage-backed securities</a>, leading to a decline in mortgage costs. In addition to discharging the securities, monetary policymakers are <a href="https://www.dailywire.com/news/federal-reserve-takes-most-aggressive-action-to-fight-inflation-in-three-decades">hiking interest rates</a> — most recently, by a 0.75% increment that represented the boldest move to combat <a href="http://dailywire.com/topic/inflation">inflation</a> in nearly three decades.
Monthly mortgage payments for the median single-family home have increased by $800 since the beginning of the year, according to the National Association of Realtors. The organization noted that the housing market differs in various regions of the United States. While the West — where real estate is the priciest — saw the largest drop in contract activity, the Northeast and South saw increases. All four regions saw year-over-year decreases in pending sales.
Existing home sales fell by 3.4% in May, according to more National Association of Realtors <a href="https://www.nar.realtor/newsroom/existing-home-sales-fell-3-4-in-may-median-sales-price-surpasses-400000-for-the-first-time">data</a>, even as the median national sale price surpassed $400,000 for the first time.
Among other factors, high prices are driven by persistent mismatches between the supply and demand for new homes. As of last summer, the United States had an <a href="https://www.nar.realtor/newsroom/once-in-a-generation-response-needed-to-address-housing-supply-crisis">underbuilding gap</a> of 5.5 million to 6.8 million units.
&#8220;There is a strong desire for homeownership across this country, but the lack of supply is preventing too many Americans from achieving that dream,&#8221; Yun said at the time. &#8220;It&#8217;s clear from the findings of this report and from the conditions we&#8217;ve observed in the market over the past few years that we&#8217;ll need to do something dramatic to close this gap.&#8221;
Even amid the long-term shortages, analysts from the Federal Reserve Bank of Dallas <a href="https://www.dailywire.com/news/unhinged-and-abnormal-fed-warns-of-housing-bubble-as-average-cost-of-new-homes-hits-record-high">forecasted</a> a housing bubble due to “market exuberance” that is “unhinged from fundamentals” — a warning that has not been issued since the housing market crash of 2008.
“An asset — in this case, housing — is in the primary expansionary phase of a bubble when price rises are out of step with market fundamentals,” they wrote. “Rapid real house-price appreciation, such as that observed now, does not in itself signal a bubble… But real house prices can diverge from market fundamentals when there is widespread belief that today’s robust price increases will continue. If many buyers share this belief, purchases arising from a ‘fear of missing out’ can drive up prices and heighten expectations of strong house-price gains.”

Pending Home Sales Unexpectedly Surge Even As Mortgage Rates Near 6%

Pending Home Sales Witness Small Surprise Uptick In May

Economy

Federal Reserve

Housing

More than 150 million American adults are living <a href="http://dailywire.com/topic/economy">paycheck-to-paycheck</a> amid soaring <a href="http://dailywire.com/topic/inflation">inflation</a>, a poll from LendingClub and PYMNTS revealed earlier this month, a drastic increase from levels reported at the same time last year.
The <a href="https://www.pymnts.com/wp-content/uploads/2022/05/PYMNTS-New-Reality-Check-June-2022.pdf">survey</a> of more than 4,000 Americans showed that “consumers in all income brackets — including those who make more than $100,000 annually&#8221; — are devoting nearly all of their salaries to paying their expenses, with little to nothing left over for savings.
In April 2021, when year-over-year consumer price <a href="https://www.usinflationcalculator.com/inflation/historical-inflation-rates/">inflation reached 4.2%</a>, and the economy continued to rebound from the previous year’s recession, roughly 52% of consumers were living paycheck-to-paycheck, according to the survey. In April 2022, when consumer inflation was 8.3%, that figure rose to 61%.
“Inflation will most likely be part of the economic picture for many months to come, and consumers living paycheck to paycheck of all income brackets will need to review their financial situations and plan their spending accordingly,” the survey report concluded.
As of May 2022, consumer inflation reached <a href="https://www.dailywire.com/news/inflation-reaches-8-6-setting-new-four-decade-high">8.6%</a>, while inflation faced by producers remained elevated at <a href="https://www.dailywire.com/news/inflation-for-businesses-continues-at-double-digit-pace">10.8%</a>.
Nearly 80% of Americans earning less than $50,000 reported living paycheck-to-paycheck — 36% “with difficulty” and 44% remaining “comfortable.” Among Americans earning between $50,000 to $100,000, more than 63% said they were living paycheck-to-paycheck. Struggles with making monthly costs extended to higher income brackets, with 36% of those earning over $250,000 reporting the same tight financial lifestyle.
High inflation in the month of May was <a href="https://www.dailywire.com/news/here-are-the-products-gutting-your-bank-account-as-inflation-soars">largely driven</a> by soaring energy costs. The price of fuel oil rose 107% year-over-year, gasoline rose 49%, utility gas service rose 30%, and electricity rose 12%. Likewise, food prices continued to increase, with the cost of meat, poultry, and fish rising 14.2% year-over-year.
Rising price levels are a significant factor behind consumer sentiment plummeting to its lowest level in seven decades, according to the University of Michigan’s benchmark Survey of Consumers. Because the United States economy largely centers upon consumer spending, the economic pessimism could point toward a looming <a href="http://dailywire.com/topic/recession">recession</a>.
“Consumers across income, age, education, geographic region, political affiliation, stockholding and homeownership status all posted large declines,” Survey of Consumers Director Joanna Hsu said in a statement, per <a href="https://www.cnn.com/2022/06/24/economy/consumer-sentiment-final-read-june/index.html">CNN</a>. “About 79% of consumers expected bad times in the year ahead for business conditions, the highest since 2009.”
President Joe Biden has deflected on the issue of rising price levels, <a href="https://www.dailywire.com/news/biden-claims-inflation-is-worse-everywhere-but-here-thats-not-even-close-to-true">claiming</a> that “Putin’s Price Hike” is the primary cause of skyrocketing inflation.
“High gas prices at the pump, energy, and food prices accounted for around half of the monthly price increases, and gas pump prices are up by $2 a gallon in many places since Russian troops began to threaten Ukraine,” Biden said. “Even as we continue our work to defend freedom in Ukraine, we must do more — and quickly — to get prices down here in the United States.”
President Biden also recently <a href="https://www.dailywire.com/news/thats-not-true-peter-doocy-throws-cold-water-on-white-house-claim-inflation-is-worse-everywhere-but-here">alleged</a> that inflation is “worse everywhere but here.” Indeed, several other developed countries — including Germany, the United Kingdom, Canada, Italy, and South Korea — are enduring higher inflation than the United States, according to recent data from the Organization for Economic Cooperation and Development (OECD). The international organization recently hiked its inflation forecasts for the United States from 4.4% to 5.9% — a level exceeding expected rates for Australia, France, South Korea, Norway, Switzerland, and Japan.

Savings from broken piggy bank.

Soaring Inflation Has Made Living Paycheck-To-Paycheck The ‘Main Financial Lifestyle’ In America

More Than 150 Million Americans Living Paycheck-To-Paycheck As Inflation Soars

Recession

Americans’ sentiment about the <a href="http://dailywire.com/topic/economy">economy</a> is more pessimistic than at any time in the past seven decades, according to the University of Michigan’s most recent Survey of Consumers.
The index reading of 50 in June reflects a severe drop since May and the lowest level since 1952, according to <a href="https://www.wsj.com/articles/consumer-sentiment-at-record-low-is-another-ominous-sign-for-economy-11656093116">The Wall Street Journal</a>, and is a key indicator of a looming <a href="http://dailywire.com/topic/recession">recession</a>.
“Consumers across income, age, education, geographic region, political affiliation, stockholding and homeownership status all posted large declines,” Survey of Consumers Director Joanna Hsu said in a statement, per <a href="https://www.cnn.com/2022/06/24/economy/consumer-sentiment-final-read-june/index.html">CNN</a>. “About 79% of consumers expected bad times in the year ahead for business conditions, the highest since 2009.”
The influential survey has seen a <a href="https://fred.stlouisfed.org/series/UMCSENT">significant decline</a> beginning in the spring of 2021, when inflation started to <a href="https://fred.stlouisfed.org/series/CPIAUCSL#0">rise</a> beyond the roughly 2% level seen over the last few decades. As of May, the Consumer Price Index (CPI) has <a href="https://www.dailywire.com/news/inflation-reaches-8-6-setting-new-four-decade-high">risen</a> 8.6% year-over-year — the highest <a href="http://dailywire.com/topic/inflation">inflation</a> rate witnessed since the 1980s.
“As higher prices become harder to avoid, consumers may feel they have no choice but to adjust their spending patterns, whether through substitution of goods or foregoing purchases altogether,” Hsu added. “The speed and intensity at which these adjustments occur will be critical for the trajectory of the economy.”
To contend with skyrocketing inflation, the <a href="http://dailywire.com/topic/federal-reserve">Federal Reserve</a> increased <a href="https://www.dailywire.com/news/federal-reserve-takes-most-aggressive-action-to-fight-inflation-in-three-decades">interest rates</a> earlier this month by 0.75% — the largest rate hike increment since 1994. The central bank already <a href="https://www.dailywire.com/news/the-fed-jacks-key-rate-up-half-point-as-inflation-surges">hiked rates</a> by 0.5% in May — the largest such increase since 2000 — after a 0.25% rate hike from near-zero levels in March. Interest rates are now at 1.5% to 1.75%, with <a href="https://www.dailywire.com/news/expect-higher-unemployment-as-federal-reserve-tackles-inflation-warns-top-policymaker">more increases likely</a> on the way.
Fears of a recession have gripped American consumers and businesses. Last week, a bout of <a href="https://www.dailywire.com/news/wall-street-sees-worst-carnage-since-2020">stock market selloffs</a> caused the Dow Jones Industrial Average and the Nasdaq Composite to fall 4.8%, while the S&amp;P 500 was down 5.8% — marking its worst week since 2020, according to <a href="https://www.cnbc.com/2022/06/16/stock-market-news-futures-open-to-close.html">CNBC</a>.
President Joe Biden, however, said in a recent interview that a recession is by no means “inevitable” and told Americans to <a href="https://www.dailywire.com/news/biden-claims-recession-not-inevitable-tells-americans-they-shouldnt-believe-economist-warnings">wait before concluding</a> that economists’ forecasts are true.
“They shouldn’t believe a warning. They should just say: ‘Let’s see. Let’s see which is correct.’ And from my perspective, you talked about a recession. First of all, it’s not inevitable,” Biden told Associated Press reporter Josh Boak before pointing to a survey taken last year to allege that households have robust savings.
Meanwhile, Biden has deflected on the issue of rising price levels, <a href="https://www.dailywire.com/news/biden-claims-inflation-is-worse-everywhere-but-here-thats-not-even-close-to-true">claiming</a> that “Putin’s Price Hike” — a reference to the Russian invasion of Ukraine and its role in soaring <a href="https://www.dailywire.com/news/gas-prices-hit-grim-national-average-of-5-per-gallon">global energy costs</a> — is the primary pressure behind inflation.
“High gas prices at the pump, energy, and food prices accounted for around half of the monthly price increases, and gas pump prices are up by $2 a gallon in many places since Russian troops began to threaten Ukraine,” Biden said. “Even as we continue our work to defend freedom in Ukraine, we must do more — and quickly — to get prices down here in the United States.”
When questioned by a recent Harvard <a href="https://www.dailywire.com/news/poll-95-of-voters-say-inflation-is-somewhat-or-very-serious">survey</a> about rising price levels, 95% of respondents said that inflation is “very serious” or “somewhat serious.” A plurality — 47% — said that the Biden administration is responsible.

8C36A07C-5EC9-4000-9157-317D3523A106_1_201_a

Consumer Sentiment Plummets To Lowest Level Since 1950s

Consumer Sentiment Plunges To Lowest Level In 70 Years

Supply Chain

On the heels of Federal Reserve Chair Jerome Powell admitting Russian President Vladimir Putin’s invasion of Ukraine was not the primary driver of inflation in America, President Biden attempted to shift the blame for inflation on someone else, whining on Twitter again about “Putin’s Price Hike.”
Powell spoke on Wednesday before the Senate Banking Committee, where Sen. Bill Hagerty (R-TN) asked, “Would you say that the war in Ukraine is the primary driver of inflation in America?”
“No. Inflation was high before, certainly before the war in Ukraine broke out,” Powell replied.
Biden desperately trying to plant culpability for high inflation anywhere but on himself, later tweeted, “I&#8217;m doing everything I can to blunt the Putin Price Hike and bring down the cost of gas and food.”
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
I’m doing everything I can to blunt the Putin Price Hike and bring down the cost of gas and food.
I led the world to coordinate the largest release from global oil reserves in history, and I’m working to get 20 million tons of grain out of Ukraine to help bring down prices.
&mdash; President Biden (@POTUS) <a href="https://twitter.com/POTUS/status/1539664642963898368?ref_src=twsrc%5Etfw">June 22, 2022</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
Just in case the public missed his initial foray into blame-shifting, he continued, “The price of gas is up by almost $2 a gallon since Putin accelerated his military build-up, and those high prices pose a challenge for working families.”
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
The price of gas is up by almost $2 a gallon since Putin accelerated his military build-up, and those high prices pose a challenge for working families.
Today, I&#39;m calling on Congress to suspend the federal gas tax for three months to provide Americans some much-needed relief.
&mdash; President Biden (@POTUS) <a href="https://twitter.com/POTUS/status/1539690973046968321?ref_src=twsrc%5Etfw">June 22, 2022</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
Powell pointed out the diference between America’s inflation and other countries’, saying, “If you look at comparable large, advanced economies like ours, you&#8217;ll see inflation rates that are quite similar to ours and some cases higher or some cases lower &#8230; But there are important differences in the characteristics. Ours is more about demand. I would say that for most of the others, theirs is more about energy prices and things like that.”
In April, Biden <a href="https://www.foxbusiness.com/politics/biden-blames-putin-for-70-of-the-increase-in-inflation-in-america">ranted</a>, “Putin&#8217;s invasion of Ukraine has driven up gas prices and food prices all over the world.&#8221;
&#8220;Ukraine and Russia are the one and two largest wheat producers in the world. We&#8217;re three. They&#8217;re shut down. We saw that in yesterday&#8217;s inflation data,&#8221; he said. &#8220;What people don&#8217;t know is that 70% of the increase in inflation was the consequence of Putin&#8217;s Price Hike because of the impact on oil prices. Seventy percent.”
As early as March 9, the Biden administration was blaming Putin for inflation; White House communications director Kate Bedingfield tweeted, “For months Putin has been saber-rattling, and for months gas prices have been going up – up 75 cents since he began his military build-up. This is the #PutinPriceHike in action &#8230;” 
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
For months Putin has been saber-rattling, and for months gas prices have been going up – up 75 cents since he began his military build-up. 
This is the <a href="https://twitter.com/hashtag/PutinPriceHike?src=hash&amp;ref_src=twsrc%5Etfw">#PutinPriceHike</a> in action, and <a href="https://twitter.com/POTUS?ref_src=twsrc%5Etfw">@POTUS</a> is going to use every tool at his disposal to shield Americans from pain at the pump.
&mdash; Kate Bedingfield (@WHCommsDir) <a href="https://twitter.com/WHCommsDir/status/1501606863330332677?ref_src=twsrc%5Etfw">March 9, 2022</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
“The <a href="https://www.dailymail.co.uk/news/consumer-price-index/index.html">Consumer Price Index</a> is currently running at 8.6 percent this May over last &#8211; the highest in over 40 years.” <a href="https://www.dailymail.co.uk/news/article-10942191/Powell-tells-senators-rate-hikes-appropriate.html">The Daily Mail</a> pointed out.
“Last week, the Fed <a href="https://www.dailywire.com/news/federal-reserve-takes-most-aggressive-action-to-fight-inflation-in-three-decades">increased interest rates</a> by 0.75% — the largest incremental rate hike since 1994,” <a href="https://dailywire.com/news/fed-chair-jerome-powell-says-recession-is-a-possibility-but-remains-strongly-committed-to-killing-inflation/">The Daily Wire</a> noted. “The central bank already <a href="https://www.dailywire.com/news/the-fed-jacks-key-rate-up-half-point-as-inflation-surges">hiked rates</a> by 0.5% in May — the largest such increase since 2000 — after a 0.25% rate hike from near-zero levels in March. Interest rates are now at 1.5% to 1.75%, with <a href="https://www.dailywire.com/news/expect-higher-unemployment-as-federal-reserve-tackles-inflation-warns-top-policymaker">more increases likely</a> on the way.&#8221;

Joe Biden

Fed Chair: Putin Not Primary Reason For High Inflation. Then Biden Whines Again About ‘Putin’s Price Hike’

Fed Chair Says Ukraine War Not Primary Driver Of Inflation

Vladimir Putin

Though <a href="http://dailywire.com/topic/inflation">inflation</a> is soaring in the United States, several key <a href="http://dailywire.com/topic/europe">European</a> <a href="http://dailywire.com/topic/economy">economies</a> are also witnessing record-high prices.
Inflation in the <a href="http://dailywire.com/topic/european-union">European Union</a> reached 8.1% as of May 2022, according to a data released last week by <a href="https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Inflation_in_the_euro_area#Euro_area_annual_inflation_rate_and_its_main_components">Eurostat</a>, with the price of energy alone increasing nearly 40% year-over-year. Meanwhile, in the United States, the Consumer Price Index (CPI) increased <a href="https://www.dailywire.com/news/inflation-reaches-8-6-setting-new-four-decade-high">8.6%</a> during the same time period, with <a href="https://www.dailywire.com/news/here-are-the-products-gutting-your-bank-account-as-inflation-soars">energy products</a> rising 35% in price.
Although both the United States and Europe began seeing higher inflation after COVID and the lockdown-induced recession, according to data from the <a href="https://data.worldbank.org/indicator/FP.CPI.TOTL.ZG?locations=EU-US">World Bank</a>, the problem has since been exacerbated due to the <a href="http://dailywire.com/topic/russia">Russian</a> invasion of <a href="http://dailywire.com/topic/ukraine">Ukraine</a>.
Russia is the world’s third largest oil producer and the overall largest exporter of oil to global markets, according to the <a href="https://www.iea.org/reports/russian-supplies-to-global-energy-markets/oil-market-and-russian-supply-2">International Energy Agency</a>. Although oil continues to be exported from Baltic and Black Sea ports, trading houses are purchasing and storing the oil in Europe, where it could eventually be resold in avoidance of international sanctions, a March report from the <a href="https://www.dallasfed.org/research/economics/2022/0322">Federal Reserve Bank of Dallas</a> explained.
“The surge in global fuel, electricity, residential natural gas and food prices, as well as the supply-chain disruptions caused directly by the invasion of Ukraine and indirectly by the sanctions against Russia, will sustain inflationary pressures in 2022,” the Dallas analysts said. “If the bulk of Russian energy exports is off the market for the remainder of 2022, a global economic downturn seems unavoidable.”
In <a href="http://dailywire.com/topic/germany">Germany</a> — which <a href="https://www.bafa.de/SharedDocs/Kurzmeldungen/DE/Energie/Rohoel/2021_12_rohloelinfo.html">imported</a> over one-third of its oil from Russia in 2021 — producer prices <a href="https://www.destatis.de/DE/Presse/Pressemitteilungen/2022/06/PD22_252_61241.html">surged</a> at their highest clip since data collection began in 1949. In the <a href="http://dailywire.com/topic/united%20kingdom">United Kingdom</a> — where Russian oil <a href="https://www.gov.uk/government/news/uk-to-phase-out-russian-oil-imports">accounts for</a> 8% of demand — inflation edged up to 9.1%, according to the nation’s <a href="https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/may2022">Office for National Statistics</a>.
British Conservation Alliance head of research Connor Tomlinson told The Daily Wire that inflation in the United Kingdom is <a href="https://www.dailywire.com/news/europes-gas-prices-are-even-higher-than-americas">worsened</a> by a “catastrophic concoction of high tax government policies, supply-side procurement issues, and quantitative easing.”
Tomlinson noted that the nation has “price caps on energy — introduced by a supposedly free market Conservative government — which has produced an arms race between consumers already strapped for cash, suppliers who are producing at a net loss while the wholesale cost of gas rises, and a government bureaucratic engine which moves too slowly to adjust the cap in accordance with market activity.” Because the <a href="https://energysavingtrust.org.uk/what-is-the-energy-price-cap/">price caps were raised</a> in April, energy bills are expected to increase by £693, or $850, per household.
Meanwhile, the United Kingdom became a net energy importer in 2005 after abandoning natural gas production in the North Sea, according to Tomlinson. Sanctions placed on Russia have also limited the nation’s <a href="https://c3newsmag.com/rare-earth-minerals-outer-space/">access to metals</a> necessary for electric vehicle adoption, as well as the decarbonization of energy grids.
“We’re also seeing the return of Marxist unions holding the country to ransom, with national rail union strikes across the country canceling train and tube services everywhere, and tripling the prices of other means of transport as a result,” Tomlinson added. “Some of us are de facto locked down, working from home, because travel strikes and prices make work impossible in offices.”
Earlier this month, the World Bank <a href="https://www.dailywire.com/news/sharpest-slowdown-in-80-years-world-bank-releases-ominous-news-about-recession-risk">slashed</a> its 2022 global economic growth forecast from 4.1% to 2.9%, largely due to elevated price levels.
“Global inflation is expected to moderate next year but it will likely remain above inflation targets in many economies,” the international financial institution said. “If inflation remains elevated, a repeat of the resolution of the earlier stagflation episode could translate into a sharp global downturn along with financial crises in some emerging market and developing economies.”

EU flag

Europe Copes With High Inflation Amid Self-Destructive Energy Policies

European Inflation Rates Continue To Climb

Europe

Oil and Gas

United Kingdom

<a href="http://dailywire.com/topic/federal/reserve">Federal Reserve</a> Chair Jerome Powell testified before members of the Senate on Wednesday that the central bank remains “strongly committed” to combating record-high <a href="http://dailywire.com/topic/inflation">inflation</a>, although there is a “possibility” of a <a href="http://dailywire.com/topic/recession">recession</a>.
Last week, the Fed <a href="https://www.dailywire.com/news/federal-reserve-takes-most-aggressive-action-to-fight-inflation-in-three-decades">increased interest rates</a> by 0.75% — the largest incremental rate hike since 1994. The central bank already <a href="https://www.dailywire.com/news/the-fed-jacks-key-rate-up-half-point-as-inflation-surges">hiked rates</a> by 0.5% in May — the largest such increase since 2000 — after a 0.25% rate hike from near-zero levels in March. Interest rates are now at 1.5% to 1.75%, with <a href="https://www.dailywire.com/news/expect-higher-unemployment-as-federal-reserve-tackles-inflation-warns-top-policymaker">more increases likely</a> on the way.
“At the Fed, we understand the hardship high inflation is causing. We are strongly committed to bringing inflation back down, and we are moving expeditiously to do so,” Powell <a href="https://www.federalreserve.gov/newsevents/testimony/powell20220622a.htm">told</a> the Senate Banking, Housing, and Urban Affairs Committee. “We have both the tools we need and the resolve it will take to restore price stability on behalf of American families and businesses. It is essential that we bring inflation down if we are to have a sustained period of strong labor market conditions that benefit all.”
While the Consumer Price Index (CPI) increased <a href="https://www.dailywire.com/news/inflation-reaches-8-6-setting-new-four-decade-high">8.6%</a> year-over-year as of May, the Producer Price Index (PPI) — which tracks <a href="http://dailywire.com/topic/inflation">inflation</a> for businesses — increased <a href="https://www.dailywire.com/news/inflation-for-businesses-continues-at-double-digit-pace">10.8%</a> over the same period, according to two recent reports from the U.S. Bureau of Labor Statistics.
During the hearing, Sen. Elizabeth Warren (D-MA) noted that the rate hikes could “tip this economy into recession” without stopping inflation, according to <a href="https://www.cnbc.com/2022/06/22/powell-tells-congress-the-fed-is-strongly-committed-to-bringing-inflation-down.html">CNBC</a>. Rate hikes are meant to curb rising price levels, but they also have the effect of increasing borrowing costs and thereby dampening economic activity.
“You know what’s worse than high inflation and low unemployment is high inflation and a recession with millions of people out of work, and I hope you’ll reconsider that before you drive the economy off a cliff,” Warren said.
The Federal Open Market Committee, which handles the Fed’s monetary policy interventions, has a dual mandate to maximize employment while keeping inflation low. Historically, there has been a tradeoff between the two goals, with low unemployment associated with higher inflation and high inflation associated with lower unemployment.
“It’s certainly a possibility,” Powell told Warren. “It’s not our intended outcome at all, but it’s certainly a possibility, and frankly the events of the last few months around the world have made it more difficult for us to achieve what we want, which is 2% inflation and still a strong labor market.”
Although rate hikes pose new risks, high inflation is creating hesitance among consumers and other economic actors. When questioned by a Harvard <a href="https://www.dailywire.com/news/poll-95-of-voters-say-inflation-is-somewhat-or-very-serious">survey</a> about rising price levels, 95% of respondents said that inflation is “very serious” or “somewhat serious.” A plurality — 47% — said that the Biden administration is responsible.
President Biden, however, has <a href="https://www.dailywire.com/news/biden-claims-inflation-is-worse-everywhere-but-here-thats-not-even-close-to-true">argued</a> that “Putin’s Price Hike” — a reference to the Russian invasion of Ukraine and its role in soaring global energy costs — is behind the inflationary pressures.
“High gas prices at the pump, energy, and food prices accounted for around half of the monthly price increases, and gas pump prices are up by $2 a gallon in many places since Russian troops began to threaten Ukraine,” Biden said. “Even as we continue our work to defend freedom in Ukraine, we must do more — and quickly — to get prices down here in the United States.”

Fed Chair Jerome Powell Delivers Semiannual Monetary Report At Senate Hearing

Fed Chair Jerome Powell Says Recession Is A ‘Possibility’ But Remains ‘Strongly Committed’ To Killing Inflation

Jerome Powell Testifies Before The Senate On Recession, Inflation

The <a href="http://dailywire.com/topic/stock-market">stock market</a> saw a brutal series of selloffs last week.
<a href="http://dailywire.com/topic/wall-street">Wall Street</a> investors’ nerves came amid disappointing <a href="http://dailywire.com/topic/inflation">inflation</a> news and a decision from the <a href="http://dailywire.com/topic/federal-reserve">Federal Reserve</a> to aggressively raise interest rates. While the Dow Jones Industrial Average and the Nasdaq Composite fell 4.8% over the course of the week, the S&amp;P 500 was down 5.8% — marking its <a href="http://dailywire.com/topic/recession">worst week</a> since 2020, according to <a href="https://www.cnbc.com/2022/06/16/stock-market-news-futures-open-to-close.html">CNBC</a>.
Last Monday, a <a href="https://www.dailywire.com/news/wall-streets-key-recession-indicator-just-went-off">yield curve inversion</a> — a phenomenon in the bond market that Wall Street watches as a recession indicator — rocked the financial world. An inverted yield curve historically precedes recessions by six months to two years, as indicated by data from the <a href="https://fred.stlouisfed.org/series/T10Y2Y">Federal Reserve Bank of St. Louis</a>.
Another series of selloffs occurred during the week ending on June 10 — the day upon which the U.S. Bureau of Labor Statistics announced that the Consumer Price Index (CPI) rose 8.6% between May 2021 and May 2022, meaning that <a href="https://www.dailywire.com/news/inflation-reaches-8-6-setting-new-four-decade-high">inflation reached new four-decade record highs</a> once again. The Dow fell 2.5%, the Nasdaq fell about 3%, and the S&amp;P 500 fell 2.7% by the end of the week.
President Joe Biden, however, said in a Thursday interview that a recession is by no means “inevitable” and told Americans to <a href="https://www.dailywire.com/news/biden-claims-recession-not-inevitable-tells-americans-they-shouldnt-believe-economist-warnings">wait before concluding</a> that economists’ forecasts are true.
“You’ve got serious economists who warn of a recession next year… What should Americans believe?” Associated Press reporter Josh Boak asked Biden.
“They shouldn’t believe a warning. They should just say: ‘Let’s see. Let’s see, which is correct.’ And from my perspective, you talked about a recession. First of all, it’s not inevitable,” Biden replied before pointing to a survey taken last year to allege that Americans have robust savings.
Two days earlier, Biden <a href="https://www.dailywire.com/news/biden-claims-inflation-is-worse-everywhere-but-here-thats-not-even-close-to-true">claimed</a> in a speech for the AFL-CIO that inflation is impacting the rest of the world more severely than in the United States. “Under my plan for the economy, we’ve made extraordinary progress,” Biden argued at the labor union’s conference. “And we put America in a position to tackle the… worldwide problem that’s worse everywhere but here: inflation.”
Nevertheless, <a href="https://www.oecd.org/sdd/prices-ppp/consumer-prices-oecd-06-2022.pdf">data</a> from the Organization for Economic Cooperation and Development (OECD) show that the United States is dealing with <a href="https://www.dailywire.com/news/pretty-bleak-international-economic-organization-issues-new-warning-about-soaring-inflation-famine">higher inflation rates</a> than many other industrialized countries. The 8.3% inflation rate seen in the United States as of April was higher than the 7.8% rate in the United Kingdom, the 7.4% rate in Germany, the 6.8% rate in Canada, the 6% rate in Italy, the 4.8% rate in South Korea, and the 2.5% rate in Japan.
In response to high inflation, the Federal Reserve announced last week that it would <a href="https://www.dailywire.com/news/federal-reserve-takes-most-aggressive-action-to-fight-inflation-in-three-decades">increase interest rates</a> by 0.75% — the largest one-time rate hike since 1994. The central bank already <a href="https://www.dailywire.com/news/the-fed-jacks-key-rate-up-half-point-as-inflation-surges">increased rates</a> by 0.5% in May — the largest such increase since 2000 — following a 0.25% rate hike from near-zero levels in March.
After the dust settled in the stock market, Federal Reserve Governor Christopher Waller said that similar moves in the near future would <a href="https://www.dailywire.com/news/expect-higher-unemployment-as-federal-reserve-tackles-inflation-warns-top-policymaker">lead to higher unemployment</a> — noting that he would vote for another 0.75% rate hike next month if the data are dismal once again.
The Fed’s benchmark interest rate is now between 1.5% and 1.75%. Rate hikes increase the cost of borrowing money for businesses and consumers — which tends to cut inflation at the expense of economic activity.

Stocks Continue To Slide As Concerns Rise Over Conflict In Ukraine

Wall Street Sees Worst Carnage Since 2020

Stocks Down Nearly 6% Last Week Amid More Dismal Economic News

Stock Market

Wall Street

<a href="http://dailywire.com/topic/federal-reserve">Federal Reserve</a> Governor Christopher Waller warned on Saturday that efforts from the central bank to tackle <a href="http://dailywire.com/topic/inflation">inflation</a> would produce higher <a href="http://dailywire.com/topic/unemployment">unemployment</a>.
Last week, Fed policymakers announced that they would take action to <a href="https://www.dailywire.com/news/federal-reserve-takes-most-aggressive-action-to-fight-inflation-in-three-decades">hike interest rates</a> by 0.75% — the boldest move to combat inflation since 1994. The central bank already <a href="https://www.dailywire.com/news/the-fed-jacks-key-rate-up-half-point-as-inflation-surges">increased rates</a> by 0.5% in May, the largest such increase since 2000, following a 0.25% rate hike from near-zero levels in March.
Waller, one of the seven policymakers charged with determining the Fed’s monetary policy, said at a conference in Dallas that monetary tightening could drive unemployment to 4% or 4.25%, per <a href="https://www.reuters.com/business/finance/feds-waller-wants-another-75-basis-point-hike-all-in-inflation-fight-2022-06-18/">Reuters</a>. According to the U.S. <a href="https://fred.stlouisfed.org/series/UNRATE">Bureau of Labor Statistics</a>, the unemployment rate is presently 3.6% — almost as low as the level that prevailed before COVID-19 and the lockdown-induced recession.
Meanwhile, the Consumer Price Index (CPI) increased <a href="https://www.dailywire.com/news/inflation-reaches-8-6-setting-new-four-decade-high">8.6%</a> year-over-year as of May, while the Producer Price Index (PPI) — which tracks inflation for wholesalers — increased <a href="https://www.dailywire.com/news/inflation-for-businesses-continues-at-double-digit-pace">10.8%</a> over the same period, according to two recent reports from the Bureau of Labor Statistics.
The Federal Open Market Committee, which handles the central bank’s monetary policy interventions, has a <a href="https://www.investopedia.com/articles/investing/100715/breaking-down-federal-reserves-dual-mandate.asp">dual mandate</a> to maximize employment while keeping inflation low. Historically, there is a tradeoff between the two goals, with low unemployment associated with higher inflation and high inflation associated with lower unemployment.
“A falling unemployment rate signals an increase in the demand for labor, which puts upward pressure on wages,” <a href="https://www.stlouisfed.org/open-vault/2020/january/what-is-phillips-curve-why-flattened">Federal Reserve Bank of St. Louis</a> economist and researcher Kevin Kliesen explained in January 2020. “Profit-maximizing firms then raise the prices of their products in response to rising labor costs.”
At the conference, Waller indicated that he would be open to additional bold actions meant to combat inflation. &#8220;If the data comes in as I expect, I will support a similar-sized move at our July meeting,&#8221; Waller said of another 0.75% rate hike. &#8220;The Fed is ‘all in&#8217; on reestablishing price stability.&#8221;
The Fed’s benchmark interest rate is now between 1.5% and 1.75%. Rate hikes increase the cost of borrowing money for businesses and consumers — a move that tends to cut inflation at the expense of economic activity.
“Job gains have been robust in recent months, and the unemployment rate has remained low,” the Federal Open Market Committee diagnosed in a <a href="https://www.federalreserve.gov/newsevents/pressreleases/monetary20220615a.htm">statement</a> last week. “Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures.”
While monetary policymakers have taken action against inflation following <a href="https://www.dailywire.com/news/top-hedge-fund-manager-sees-two-ways-out-of-soaring-inflation-and-neither-one-is-pretty">calls from Wall Street</a>, President Joe Biden continues to point toward the Russian invasion of Ukraine as the driver of soaring prices.
“Putin’s Price Hike hit hard in May here and around the world: high gas prices at the pump, energy, and food prices accounted for around half of the monthly price increases, and gas pump prices are up by $2 a gallon in many places since Russian troops began to threaten Ukraine,” Biden <a href="https://www.dailywire.com/news/president-biden-blames-vladimir-putin-for-record-high-inflation">argued</a> two weeks ago in a statement. “Even as we continue our work to defend freedom in Ukraine, we must do more — and quickly — to get prices down here in the United States.”
The month of June has been marked by multiple <a href="https://www.dailywire.com/news/dow-plummets-below-30000-down-almost-20-this-year-under-biden">stock market selloffs</a> amid the poor inflationary news and the Fed’s subsequent action.

Federal Reserve Lowers Key Rate By Three Quarters Of A Point

Expect Higher Unemployment As Federal Reserve Tackles Inflation, Warns Top Policymaker

Federal Reserve Governor Foresees Unemployment Rising As Action Is Taken Against Inflation

Unemployment

Former Obama administration economic adviser <a href="https://www.dailywire.com/topic/larry-summers">Larry Summers</a> warned Sunday that all precedents in the <a href="https://www.dailywire.com/topic/economy">economy</a> are pointing to a recession happening in the next two years. 
Summers, appearing on “<a href="https://www.nbcnews.com/meet-the-press/video/fmr-treasury-secretary-larry-summers-says-recession-likely-by-end-of-next-year-142416965792">Meet The Press</a>,” told NBC News host Chuck Todd that “a whole range of indicators” — including markets, relative levels of <a href="https://www.dailywire.com/topic/interest-rates">interest rates</a> at different durations, consumer expectations, and supply and demand — are pointing toward a recession, which is defined as two consecutive quarters of negative economic growth. 
“All of that tells me that, while I wouldn’t presume whether to judge the timing, the dominant probability would be by the end of next year we will be seeing a recession in the American economy,” said Summers, who also served as treasury secretary in the 1990s. He also said that this perspective had become the common view among a number of statistical models and forecasters. 
Noting economic precedents, Summers said in a different <a href="https://www.bloomberg.com/news/articles/2022-04-14/podcast-summers-predicts-a-u-s-recession-more-likely-than-a-soft-landing?srnd=premium">Bloomberg</a> interview, “If you look at history, there has never been a moment when inflation was above 4% and unemployment was below 5% when we did not have a recession within the next two years.”  
The Biden administration, for its part, has been acknowledging the challenge of the economy but has also echoed in lock-step that an economic downturn isn’t inevitable. Department of Energy Secretary <a href="https://www.dailywire.com/topic/jennifer-granholm">Jennifer Granholm</a> and Department of Treasury Secretary <a href="https://www.dailywire.com/news/yellen-recession-not-inevitable-russias-war-to-blame-for-soaring-inflation">Janet Yellen</a> both spoke to this point on Sunday morning news shows, as well. 
“I expect the economy to slow,” Yellen told George Stephanopolous on ABC News. “It’s been growing at a very rapid rate, as the economy, as the labor market, has recovered. We have reached full employment. It’s natural now that we expect a transition to steady and stable growth, but I don’t think a recession is at all inevitable.”
According to a <a href="https://www.dailywire.com/news/new-survey-reveals-when-ceos-expect-a-recession-to-hit">Conference Board survey</a> of 750 CEOs released on Friday, a majority of top company execs foresee a recession in the next 12 to 18 months. A small minority, 15%, said in the same survey that the region in which their company operates is already in a recession. In a National Association of Manufacturers Survey, nearly <a href="https://www.dailywire.com/news/majority-of-manufacturers-predict-recession-within-the-next-year">6 in 10 business leaders</a> indicated that a recession was more likely in the next year due to inflationary pressures. 
President <a href="https://www.dailywire.com/topic/joe-biden">Joe Biden</a> himself has suggested Vladimir Putin is partly responsible for rising costs and accused businesses of price gouging. On Thursday, in an interview with the Associated Press, Biden encouraged Americans to <a href="https://www.dailywire.com/news/biden-claims-recession-not-inevitable-tells-americans-they-shouldnt-believe-economist-warnings">wait and see</a> whether economists were correct about their recession predictions. 
“They shouldn’t believe a warning. They should just say: ‘Let’s see. Let’s see, which is correct.’ And from my perspective, you talked about a recession. First of all, it’s not inevitable,” said Biden.

Former U.S. Treasury Secretary Larry Summers

Top Obama Economic Advisor: ‘Whole Range Of Indicators’ Point To Coming Recession

Larry Summers Says 'Range Of Indicators' Point To Recession In Next Two Years

Department of the Treasury

Janet Yellen

Larry Summers

Treasury Secretary <a href="https://www.dailywire.com/topic/janet-yellen">Janet Yellen</a> on Sunday blamed global factors for Americans&#8217; spiraling purchasing power and declared a <a href="https://www.dailywire.com/topic/recession">recession</a> is “not at all inevitable,” despite a growing consensus the U.S. could soon find out one is already underway.
Appearing on ABC’s “This Week with George Stephanopoulos,” the former Federal Reserve chair acknowledged inflation is at “unacceptably high levels” but said a recession might not be around the corner.
&#8220;I expect the economy to slow,&#8221; Yellen said. &#8220;It&#8217;s been growing at a very rapid rate, as the economy, as the labor market, has recovered. We have reached full employment. It&#8217;s natural now that we expect a transition to steady and stable growth, but I don&#8217;t think a recession is at all inevitable.&#8221;
A recession is defined as two consecutive quarters of negative economic growth. Because the U.S. gross domestic product declined at an annualized rate of 1.5% in the first quarter of 2022, whether or not the U.S. is now in a recession will be determined at the end of this month, when the second quarter concludes.
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Treasury Sec. Janet Yellen tells <a href="https://twitter.com/GStephanopoulos?ref_src=twsrc%5Etfw">@GStephanopoulos</a> that a recession isn&#39;t “inevitable,&quot; but says inflation is &quot;unacceptably high.&quot; 
&quot;I expect the economy to slow.&quot; <a href="https://t.co/xMZVnzRLgN">https://t.co/xMZVnzRLgN</a> <a href="https://t.co/Xx9UpkmWz4">pic.twitter.com/Xx9UpkmWz4</a>
&mdash; This Week (@ThisWeekABC) <a href="https://twitter.com/ThisWeekABC/status/1538515987481481216?ref_src=twsrc%5Etfw">June 19, 2022</a></blockquote>
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The hopeful thought that the U.S. might avoid a recession echoed President Joe Biden&#8217;s claim in a Thursday interview with The <a href="https://apnews.com/article/biden-ap-interview-4d2c2f9015341f280d8078182601ec58">Associated Press</a> that a recession is “not inevitable.” But top business leaders are increasingly resigned to the possibility the country is already in a recession.
Yellen, like President Biden and current Federal Reserve Chairman Jerome Powell, initially insisted last year that inflation was “transitory” and would soon slow, blamed it on factors beyond the Biden administration’s control. Specifically, Yellen blamed the war in Ukraine, which has affected global supply chains.
She said Americans have enough savings to keep consumer spending high, which could help stave off a recession. She also expressed support for a gasoline tax &#8220;holiday,&#8221; which would give Americans some relief from ballooning pump prices.
The annual inflation rate in the U.S. jumped to 8.6% in May, the highest monthly increase since December of 1981. Energy prices rose 34.6%, mainly due to a near 50% increase in the cost of gasoline. But food costs also rose 10.1%, the first increase of 10% or more since March 1981, according to <a href="https://tradingeconomics.com/united-states/inflation-cpi">tradingeconomics.com</a>. In addition, the U.S. stock market officially entered bear market territory this week, according to <a href="https://www.dailywire.com/news/bloodbath-on-wall-street-as-stock-market-plunges-into-bear-territory">The Daily Wire</a>, as the decline breached the 20% benchmark.
In a later appearance on <a href="https://youtu.be/zzL6OFr9lA0?t=43">CNN</a>, Energy Secretary Jennifer Granholm also claimed a &#8220;recession is not inevitable.&#8221;
Surging inflation occurring in concert with a recession is known as “stagflation” and would be a nightmare for American families, much less the Biden administration. Last week, the Federal Reserve moved aggressively to tame inflation by raising the federal funds interest rate by three-quarters of a point, the highest one-time increase since 1994.
Yellen predicted the rate of inflation would come down over the coming months. If it does, it will defy double-digit increases in the producer price index or wholesale inflation. Typically seen as an indicator of retail price increases, it has risen steadily and at a higher pace than the monthly annualized inflation rate.

Yellen: Recession Not ‘Inevitable’; Russia’s War To Blame For Soaring Inflation

Yellen: Recession Not 'Inevitable'; Russia's War To Blame For Soaring Inflation

Ukraine-Russia War

John Boyd Jr., president of the National Black Famers Association, noting the problems American farmers are having because of inflation, slammed President Biden as he appeared on NewsNation.
“When you say there’s going to be food shortages, are we talking about things like what we see from Venezuela or from Cuba or from Russia, where if you go to the grocery store, is it that they’re out of Honey Nut Cheerios or are they out of all cereal?” NewsNation host Leland Vitter asked.
“Well, most people don’t know corn for instance is in Corn Flakes and corn syrup; soybeans are in all sorts of products that wind up in your local grocery stores,” Boyd Jr. said. “So when you don’t have enough corn and you don’t have enough wheat, when you don’t have enough soybeans, those things, those major items that we need to make all these other products are not going to be in your local grocery stores like we’ve been used to.”
“For so long we’ve had and enjoyed lots of food in this country,” he continued. “So we’ve never, ever faced a food shortage and I think that that&#8217;s coming in the coming months. The Biden administration, that I&#8217;ve been urging to take more swift action, still hasn&#8217;t taken the action that I believe that’s needed.”
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National Black Farmers Association president: &quot;We&#39;ve never, ever faced a food shortage — and I think that&#39;s coming.
&quot;The Biden administration, that I&#39;ve been urging to take more swift action, still hasn&#39;t taken the action that I believe is needed.&quot; <a href="https://t.co/xziga6dxZU">pic.twitter.com/xziga6dxZU</a>
&mdash; RNC Research (@RNCResearch) <a href="https://twitter.com/RNCResearch/status/1537884382232317958?ref_src=twsrc%5Etfw">June 17, 2022</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
Last month Boyd Jr. <a href="https://www.youtube.com/watch?v=Rt5nV2hayPg">warned</a>, “Right now we’re in a crisis in America as it relates to farmers. We‘re facing an all-time high in diesel fuel; here in Virginia I’m paying $5.63 a gallon for diesel fuel. We‘re at an all-time high for fertilizer; I’m paying $900 a ton. &#8230; We just provided relief for Ukraine; we’re going to be looking at some lawsuits there in the form of wheat and other commodities.”
Roger Cryan, Chief Economist of the American Farm Bureau Federation, <a href="https://www.fb.org/news/addressing-inflation-critical-for-farmers-and-ranchers">pointed out</a> the danger for farmers because of inflation. He stated in May, “March’s inflation was the highest in 40 years. &#8230; Inflation is a problem because it creates a lot of price uncertainty. It really creates a disconnect between long term and short-term lending, and probably most damaging is that it raises long-term interest rates.”
“So, this raises the farmer&#8217;s costs of borrowing for expansion or for reinvestment on the farm,” he explained. “That was really the biggest trouble with inflation back in the 70s and 80s for the farmers, it created a very painful decade in the 1980s, and it&#8217;s really important to deal with this.”

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‘Still Hasn’t Taken The Action That’s Needed’: National Black Farmers Association Pres. Slams Biden

Farmers

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