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President Joe Biden’s round of victory for his bill on climate change and prescription drug prices ran into a stumbling block on Tuesday as he celebrated its passage into the White House as the stock market experienced its biggest drop in two years.
As Biden spoke, the Dow lost more than 1,250 points and the S&P 500 fell 4.3% after Tuesday’s report that inflation essentially stagnated in August, standing at 8.3 percent.
“We are making progress,” Biden said in his address on the South Lawn of the White House. But he acknowledged that there was work to be done: ‘We are also getting other prices down. We have more to do. We are coming.’
The event is designed to strengthen democrats‘work on convenience’ cost of living for Americans.
“With this bill, the American people won and lost special interests,” Biden said as the crowd cheered him.
More than a thousand people were crammed onto the South Lawn on the hot sunny day. Democratic members of Congress, union officials and Biden supporters attended to cheer on the president.
But the downward spiral of the markets and the inflation rate for August threw clouds in its day. As cable news networks broadcast his comments, they incorporated the declining Dow numbers into their cyrons.
And Biden had his own stumbling block. He had taken off his jacket on the 80-degree day and then stepped on it.
He spoke of his legislative victory: “This extraordinary story is being written in America today by this administration as I step over my coat.”
He stopped to pick it up. “Good thing my mom isn’t here,” he joked as the crowd laughed.
President Joe Biden’s victory round for his bill on climate change and prescription drug prices ran into a stumbling block on Tuesday as he celebrated its passage into the White House as the stock market experienced its biggest tumble in two years.
Wall Street’s major stock indices fell sharply at the opening bell on Tuesday as the latest inflation data fueled fears the Fed would continue its aggressive path of rate hikes
President Biden took off his jacket on the hot 80-degree day; he stepped on it later
The event had a dual purpose: to promote to voters — as November’s congressional elections approach — that he and his party can get things done in Washington and kill his political rivals.
Biden reprimanded Republicans for not voting for the bill.
“I think Republicans could and should have joined this bill as well,” Biden said. ‘After all, with this bill, families saved the costs of reducing inflation at the kitchen table.’
He also criticized Donald Trump’s tax cut, though he didn’t mention the former president’s name: “Under my predecessor, there was a $2 trillion tax cut, which was not paid a cent and benefited mostly the richest 1% of Americans. people and the biggest companies,” he said.
Ahead of the big event, news came that prices rose 0.1 percent in August from the previous month, despite falling gas costs. However, food prices rose, as did monthly rents.
It was unwelcome news for the Biden administration and a sign that the Federal Reserve will continue to raise interest rates, pushing up mortgage rates, auto loans and credit card rates.
Inflation in August stood at 8.3 percent, down from 8.5 percent in July and 9.1 percent in June. Still, economists had hoped for a steeper decline. The stock market collapsed on the news: the Dow fell more than 500 points, the S&P and Nasdaq fell 2 percent.
The Biden administration has repeatedly touted that gas prices have fallen in recent months — after reaching more than $5 a gallon in some parts of the country.
But August inflation data was the driving force behind food prices, which soared at lightning speed. The price of groceries was 13.5 percent higher than last year, the largest annual increase since February 1979.
Republicans attacked Republican National Committee chairman Ronna McDaniel, arguing that Americans “can’t afford” Biden as president.
Families just can’t afford Biden and the Democrats. Voters know that the Democrats’ reckless spending got us into this mess and the only way to clean it up is to vote those politicians out. As Biden and Democrats take an out-of-touch victory round today, Americans are struggling to fill their grocery carts,” she said in a statement.
The costs of services – such as eating out or having childcare – are also rising.
In addition, Americans are also paying more per month for rent as more people are shying away from buying homes because of high mortgage rates, reducing the number of available rental properties.
Biden, however, argued that prices have remained essentially stable, which he called “welcome” news.
“Overall, prices in our country have been pretty much flat for the past two months: That’s good news for American families, there’s still more work to be done,” he said in a statement on Tuesday.
“It takes more time and determination to reduce inflation. That’s why we passed the Inflation Reduction Act to reduce the cost of health care, prescription drugs and energy. And my economic plan shows that as we lower prices, we create high-paying jobs and bring manufacturing back to America,” he added.
President Joe Biden, left of center, speaks with Senator Joe Manchin, a Democrat from West Virginia, at an Inflation Reduction Act event on the South Lawn of the White House
President Joe Biden (2-R), US Vice President Kamala Harris (R), First Lady Jill Biden (2-L) and Second Gentleman Douglas Emhoff (L) attend a celebration of the Inflation Reduction Act
‘Nice gesture’: Biden gave the pen he used to sign the Inflation Reduction Act into law to Senator Joe Manchin, who infuriated Democrats by assassinating Build Back Better, but then negotiated the measure with Senate Leader Charles Schumer (center ).
August’s inflation rate of 8.3% was down from a 40-year high of 9.1% in June and 8.5% in July, but showed that inflation is still high and well above its target. the 2% Fed
Biden signed the $430 billion Inflation Reduction Act last month in a withheld ceremony.
Republicans argue that the legislation will lead to higher energy prices, higher taxes on the middle class and possibly more audits by the Internal Revenue Service.
The law includes incentives for the clean energy industry, allows Medicare to negotiate lower drug prices for the elderly, seeks to ensure corporations and wealthy people pay their taxes through enhanced IRS funds, and aims to curb inflation. by reducing the federal deficit.
Biden will use the ceremony to boost his own economic credentials, arguing that he and Democrats helped get the economy back on track.
Voters give President low marks on his handling of the economy — a sign of their frustration at high prices. A July poll by CNBC showed that Biden’s economic approval score was just 30 percent, lower than that of his predecessors Donald Trump and Barack Obama.
Those numbers make Democrats fearful of how voters will act at the ballot box in November, when they try to maintain control of Congress in the midterm elections.
Biden originally wanted to approve his trillion dollar Social Security bill known as “Build Back Better.” But it died a legislative death when moderate Democratic Senator Joe Manchin refused to back it, citing concerns it would increase the deficit.
Manchin signed the Inflation Reduction Act after months of negotiations.
After Biden signed the inflation reduction bill at the White House in August, he handed over the pen he was using to Manchin.
“It was a nice gesture,” the West Virginia senator told reporters afterwards.
The bill ranks as one of Biden’s most significant legislative achievements, albeit with the bipartisan infrastructure bill.
It received no Republican votes in Congress.
It includes $430 billion in spending, raising $737 billion over a decade in revenue and is expected to shave about $300 billion from the deficit. It raises $265 billion by allowing the government to negotiate with drug companies to lower the cost of Medicare prescription drugs.
The climate benefits, totaling $369 billion, are expected to reduce carbon emissions by 40 percent from previous levels, and it includes extensions to the Affordable Care Act grants totaling $64 billion.