- ORIGINAL NEWS
After Biden praises progress on inflation in State of the Union, economists weigh in
- SUMMARY
Inflation is decreasing, while wages are slightly increasing.
However, many households are still struggling to afford basic necessities due to the still-high cost of living.
The challenge now is to control inflation without causing a recession.
While President Biden praised progress in combating inflation, experts point out that purchasing power has declined by 20%.
Despite wage growth and improved consumer confidence recently, lower-income families remain vulnerable.
Experts believe it will be difficult to reach the 2% inflation target set by the Federal Reserve without risking economic growth.
- NEWS SENTIMENT CHECK
- Overall sentiment:
neutral
Positive
“Inflation has cooled while wages have ticked higher”
“The consumer price index…has fallen gradually from a 9.1% pandemic-era peak in June 2022 to 3.1% in January.”
Negative
“Inflation has cooled while wages have ticked higher, but many households are still struggling to keep up with the increased cost of living.”
“In his State of the Union address, President Joe Biden celebrated his administration’s progress in the fight against inflation. “Wages keep going up and inflation keeps coming down,” Biden said in the annual speech before Congress.”