There isn't much Biden can do about the potential shocks to the American economy caused by Russia's invasion of Ukraine.
The Russian military campaign has caused gas prices to go up. Inflation is not limited to the energy sector. According to a new federal report, prices are going up for groceries, housing, and furniture. It is causing administration officials to concede inflation will not ease anytime soon.
We are likely to see another year in which 12-month inflation numbers remain very uncomfortably high, according to Treasury Secretary Janet Yellen.
On Friday, a gallon of gas cost $4.33 per gallon. The US and UK are likely to impose an embargo on Russian oil and gas. Biden said he couldn't do much to cut those prices right now. Russia is responsible.
Democrats say it is a big deal. They are pushing for aggressive action to rein in costs.
"Not only can we do something about it, but we must do something about it," said Rep. Ro Khanna of California in an interview. We have to reduce the price.
The White House is trying. The Washington Post's Jeff Stein reported on some of the options they're eyeing to cushion the economy.
Experts say that these measures will have little impact on providing short-term relief to Americans who are seeing price increases everywhere.
There is little the administration can do, according to a former top Obama administration economist.
Brian Riedl, a budget expert at the right-leaning Manhattan Institute said in an interview that inflation is hard to reverse once it takes on a life of its own. It is hard to control once it grows.
Lindsay Owens, executive director of the left-leaning Groundwork Collaborative, told Insider that there is not a silver bullet for the administration.
The White House has limited options when it comes to relief at the pump. A gas tax holiday is all but dead in the Senate, and economists argue that it wouldn't do much to help consumers. The release of oil from the strategic petroleum reserve was authorized by the Biden administration in November.
Legislation was recently introduced by Khanna and Whitehouse that would tax the profits of large oil companies and use it to give checks to Americans four times a year. The bill faces long odds due to Republican opposition.
The California Democrat believes that the current crisis will lead to a path towards energy independence and further transition the US off fossil fuels.
If Kennedy said that we need to go to the moon to beat the Soviets, we need to have a moonshot for renewable energy to beat the countries of Russia, Saudi Arabia, Iran and Venezuela.
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