President Joe Biden met with members of his economic team this morning as September’s worse-than-expected inflation report poses new headaches for the White House.
Inflation clocked in at 8.2% for the 12 months ending in September, according to the consumer price index, which is bad news for the country’s economic health. Thursday’s report will be the last inflation update released before the midterm elections.
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“The president met today with his economic team to receive a briefing on the global economy and financial markets,” read a statement from the White House. “Despite global economic challenges associated with elevated inflation throughout the world, they reported that the United States remains in a strong position to bring down inflation and maintain a resilient job market.
The numbers provided by the Bureau of Labor Statistics on Thursday morning indicated that while it decreased by one-tenth of a percentage point, inflation was higher than anticipated and defying the Federal Reserve’s aggressive interest rate hikes.
Biden has reacted to recent reports by focusing on the month-over-month figures, which were 0.0% in July and 0.1% in August. But in September, even that figure rose 0.4%, again suggesting that inflation is far from being tamed.
The markets immediately sunk after the news broke. Dow Jones Industrial Average futures dropped by around 500 points after the release of the report. The S&P 500 was off by about 2%, and the Nasdaq composite also dipped by almost 3%.
Nonetheless, the White House insists it is working hard to address the problem and will get inflation under control.
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“Moreover, President Biden’s economic plan continues to position the U.S. economy for stronger growth and investment in the United States,” the statement read. “The president directed the team to stay in close contact with key market actors, partners, and allies and to update him as conditions evolve.”
