Casting corporate profiteering as a key driver of inflation would be a political winner for Democrats—and it has the virtue of being true.

by Robert Reich, In These Times

Despite the Federal Reserve’s most aggressive campaign in generations to slow the economy and bring price increases under control, prices continued to climb at a brutally rapid pace in September — with a key inflation index increasing at the fastest rate in 40 years.

man viewing receipts in supermarket and tracking prices

Even though the Fed has quickly raised interest rates from near zero to a range of 3 to 3.25 percent, overall inflation — 8.2 percent over the year through September — continues to roar. Worse, it’s headed in the wrong direction. After stripping out volatile fuel and food, inflation increased. No wonder investors expect the Fed to announce another rate increase at the end of its next meeting, on Nov. 2.

All this could have severe political consequences for Democrats in the midterm elections three weeks from today. Republicans are focusing on inflation because voters see it as their biggest immediate problem, and it’s easy to pin blame on the Democrats because they’re in charge. Biden and the Democrats have provided no retort except to talk about their efforts to reduce drug prices.

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