Inflation is the biggest internal problem in the United States of America (USA), according to the recognition of President Joseph Biden himself and the evaluations of 70 percent of surveyed Americans, writes Voice of America.
While the fear of recession reigns on Wall Street, ordinary citizens fear going to the grocery store or gas station.
Recession fears rose as the US Federal Reserve raised its key interest rate by 0,75 percent - the biggest increase in nearly three decades.
"High inflation brings significant hardship, especially to those who are hardest hit to pay the high costs of essentials such as food, housing and transportation," Federal Reserve Chairman Jerome Powell said.
Food prices have increased by almost 12%, gasoline is almost twice as expensive, and airline ticket prices have increased by almost 40% compared to the same period last year.
"I'm probably paying a good $50 to $75 more a week for basic groceries," some consumers say.
With a large portion of the household budget now going to essential items such as gasoline, Americans are skimping on other things, so retail sales fell 0,3 percent in May.
"There is a lot of economic uncertainty. I think it would be wise to look at how much money you bring into the house, how much you have in savings and whether you have a separate amount for rainy days," is the recommendation of economist Ellie Wolf.
By aggressively increasing the interest rate, the Central Bank wants to help stabilize prices, but this means that everything will be more expensive - from a loan for a new car, to a loan for a house, where the interest rate has already increased from three percent in January to six percent, to interest on credit cards…
Biden sent a letter to the CEOs of major oil companies and blamed corporate greed, along with the war in Ukraine, for record high gasoline prices.
He warned that he could use his executive powers to increase production at refineries, stressing that it is unacceptable for American families to directly finance oil company profits that are significantly higher than usual.
However, refineries are already operating at nearly full capacity, and the White House has not provided many details about Biden's plan.
"We call on them to do the right thing, to be patriotic and not use the war as an excuse," said White House spokeswoman Karin Jean-Pierre.
However, the American Petroleum Institute blamed Biden's "green energy" policies, arguing that the president's misguided agenda away from domestic oil and natural gas contributed to inflation.
As for the record profits, the companies responded that they are now recouping the large losses they suffered during the pandemic, such as the $22 billion loss reported by Exxon Mobil in 2020.
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