Biden's Inflation Politics: Good News and Headwinds

Inflation remains high enough to concern the Federal Reserve, but food and gas prices have improved, offering President Joe Biden a bit of a reprieve. Fed policymakers are expected to pause after more than a year of interest rate hikes, but inflation remains elevated. While economic confidence is still quite low, the drop in gas prices has improved public sentiment about the economy. However, prices are still much higher than they were before the pandemic, and Republican politicians will still use inflation to rally support regardless of how it behaves now.