Inflation in the US surged in November to 6.8% year-over-year, higher than expected and the largest in nearly 40 years, setting politicians and economist on edge that they are behind the inflation curve.
The result could be an economy that struggles to gain traction before next year’s midterm elections.
Recently we had the highest inflation in 30 years. Now we have the highest inflation in 40 years. From @CNBC: https://t.co/7yUIE1VCLF
— Byron York (@ByronYork) December 10, 2021
“Inflation accelerated at its fastest pace since 1982 in November, the Labor Department said Friday, putting pressure on the economic recovery and raising the stakes for the Federal Reserve,” said CNBC. “The consumer price index, which measures the cost of a wide-ranging basket of goods and services, rose 0.8% for the month, good for a 6.8% pace on a year over year basis and the fastest rate since June 1982.”
The rising tide of inflation makes it more likely that the Federal Reserve will be forced to raise interest rates earlier rather than later, which means that the economy could slow down earlier rather than later.
“The latest strong inflation report strengthens the case for Federal Reserve officials to agree next week to accelerate the wind-down of their stimulus efforts, clearing the way for them to potentially lift interest rates in the spring,” said the Wall Street Journal.
New CNBC poll:
Biden approval 41 / disapprove 50
Biden economic approval 37 // disapprove 56
Biden COVID approval 46 / disapprove 48Top three issues: inflation, immigration, crime.
Republicans +10 on the generic ballot (up from R+2 in October)https://t.co/Bht52SJe8J
— Josh Kraushaar (@HotlineJosh) December 10, 2021
That will likely ring alarm bells all over Washington D.C., as Democrats face an unprecedented revolt amongst voters over Joe Biden’s leadership on the economy. The inflation news means that with interest rates likely going up, and the economy getting worse, the result could be disaster for the Democrats next year.
New surveys from CNBC show that Republicans hold a 10-point advantage in congressional generic ballots, the largest lead in the last 20 years.
“In the past 20 years, CNBC and NBC surveys have never registered a double-digit Republican advantage on congressional preference, with the largest lead ever being 4 points for the GOP,” said CBNC’s analysis of the survey.
“If the election were tomorrow, it would be an absolute unmitigated disaster for the Democrats,″ said Jay Campbell, partner at Hart Research Associates and the Democratic pollster for the survey, according to the Washington Times.
