Former President Donald Trump recently criticized President Joe Biden, attributing the current inflation crisis to his administration. Trump claimed that there was no inflation during his time in office, contrasting it with the current situation.
The inflation crisis in America has been influenced by various factors. The disruptions caused by the pandemic led to significant supply chain issues, resulting in a surge in prices. Additionally, the conflict between Russia and Ukraine further escalated costs, particularly in the energy sector. The Federal Reserve's decision to maintain low interest rates for an extended period also played a role in exacerbating the inflation problem.
Furthermore, the distribution of stimulus checks during both the Trump and Biden administrations contributed to the inflationary pressures. In June 2022, inflation in America peaked at 9.1% compared to the previous year. Although it has since decreased to 3.3%, it remains higher than the 1.4% rate when Biden assumed office.
For decades prior to Biden's presidency, inflation in America was not a significant concern and typically remained below the Federal Reserve's target of 2%. During the Trump administration, inflation was consistently kept in check. However, the pandemic-induced lockdowns artificially suppressed inflation rates, and the subsequent reopening of the economy led to a rebound in inflation.
