WASHINGTON (NEXSTAR) – New monthly inflation numbers show consumer costs running hotter than expected. Gas, rent and car insurance largely drove overall inflation higher.
President Biden acknowledged prices are still too high for things like housing and groceries but says inflation is still making steady progress.
“We’re in a situation where we’re better situated now than when we took office,” Biden said.
The president says overall inflation has slowed by more than 60% since his administration reigned in record-high prices during the pandemic.
But he expects stubborn costs including gas, rent and car insurance prices to likely delay the Federal Reserve’s effort to slash interest rates.
“I do stand by my prediction,” he added.
Greg McBride, Chief Financial Analyst at BankRate agrees with President Biden about the Fed’s upcoming decision.
“You can kiss any idea of a June interest rate cut goodbye,” said McBride.
McBride breaks with the president on his current view of the economy.
“I think we’re moving in the wrong direction, not the right direction,” he said.
McBride says the new federal inflation numbers are so problematic because they target Americans’ necessities.
“You do pay rent every month. You do pay the insurance and the electric bill, and those things continue to go up at an outsized pace,” McBride added.
The report shows the consumer price index ticked up to 3.5% in March. The Fed’s goal is 2%.