Navigating the Inflation Debate: Biden, Powell, and Dimon

The March consumer price index dropped to a 5 percent annual increase, the slowest pace since May 2021, which could boost President Joe Biden's chances of winning a second term. However, core inflation, which strips out volatile energy and food prices, actually rose in March on an annual basis, which could deter Federal Reserve Chair Jerome Powell in his war on inflation. Bank lending has also sharply declined, which could lead to a recession if a real credit crunch occurs and money stops flowing freely into the U.S. economy.