Reuters
Published Nov 10, 2021 06:04AM ET
Updated Nov 10, 2021 07:45PM ET
By Andrea Shalal
BALTIMORE (Reuters) -President Joe Biden's first trip to celebrate a long-sought congressional victory on infrastructure was clouded by new data showing inflation rose to a level not seen for more than 30 years.Biden, who ran on his ability to whip COVID-19 and revive the economy that the pandemic left in tatters, now faces rising political pressure over shortages of goods and rising prices as society comes back to life.
"Consumer prices remain too high," Biden said at the Port of Baltimore. "We still face challenges we have to tackle head on."
The remarks followed hours after the Labor Department reported https://www.reuters.com/business/us-consumer-prices-surge-weekly-jobless-claims-fall-2021-11-10 that U.S. consumer prices accelerated 6.2% in the 12 months through October, the largest year-on-year jump since November 1990.
Broad-based gains from pork chops to gasoline, sports tickets and health insurance suggested the issue was not a one-off, as the White House has largely maintained was the case through 2021.
On Wednesday, Biden described reversing inflation as "a top priority for me."
The trip would have been more of a victory lap under different circumstances. Lawmakers on Friday passed a $1 trillion infrastructure package https://www.reuters.com/world/us/roads-bridges-airports-details-bidens-1-trillion-infrastructure-bill-2021-11-05 that Biden chaperoned after months of torturous negotiations.
Baltimore's port is one of the nation's busiest, and it is set to benefit from billions of dollars that the bill has set aside for ports alone.
Port congestion is one of the major issues. Goods ordered months ago from abroad wait at sea to be unloaded and transported inland.
Issues like those have turned Biden's White House into an economic emergency response team. Biden on Tuesday talked to companies https://www.reuters.com/world/us/biden-speaks-with-walmart-ups-other-ceos-supply-chain-issues-official-2021-11-09 including Walmart (NYSE:WMT) and UPS to ensure they are ready for demand to skyrocket during the Christmas holiday rush. His aides worked with the ports of Long Beach and Los Angeles to move goods around the clock.
The infrastructure package includes $17 billion in investments https://www.reuters.com/world/us/white-house-looks-move-quickly-17-bln-revamp-us-ports-2021-11-09 to help ports, including dredging to allow for larger ships and capacity expansion.
The Port of Baltimore imports and exports more autos, farm machinery and construction equipment than any other U.S. port. It employs more than 15,300 people.
Economic concerns have created political issues for Biden. The Democratic president has seen his popularity sag in recent months. His party is looking ahead to the 2022 mid-term elections, when they must defend their thin congressional majorities.
Now, Biden is trying to close a deal on a roughly $1.75 trillion proposal to expand the country's social safety net and fight climate change.
Senator Joe Manchin, a moderate Democrat who holds a virtual veto over Biden's agenda given narrow congressional margins, said on Wednesday that politicians "can no longer ignore the economic pain Americans feel every day."
Manchin has previously expressed concern that the new spending bill could exacerbate inflation, a notion disputed by White House officials and a number of independent economists.
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.