CNN’s Matt Egan Says ‘No Way to Sugarcoat’ May Inflation Number: ‘Not a Good Recipe’ for Biden and Dems
CNN’s Matt Egan said on Friday there’s “no way to sugarcoat” the May inflation report and that it’s “not a good recipe” for President Joe Biden and the Democrats ahead of November.
Inflation rose to a record-high 8.6 percent in May, compared to a year ago, according to data released by the Labor Department on Friday. That’s the highest since 1981 — 40 years.
Appearing on Inside Politics, Egan said:
Really no way to sugarcoat this. A rough day for the American economy. Consumer prices rising at the fastest pace since Ronald Reagan was in the White House. This really comes down to four key areas: food, fuel, shelter, and used cars. And three of the four of those things you really can’t avoid paying whatever the prices are. And so this means that paychecks are not going as far as they used to. According to Moody’s, the average household is paying $347 more per month because of high inflation. That really adds up.”
A graphic was shown of the spike in the year-over prices of gasoline at 48.7 percent, used cars at 16.1 percent, food at 10.1 percent and shelter at 5.5 percent.
Egan also said:
And so no wonder that today we also learned that consumer sentiment plunged in June to a record low. Lower than the Covid low. Lower than the 2008 low. Kind of amazing when you think about it. Also going lower today, the stock market. U.S. stocks down sharply for the second day in a row. That means 401k plans, college savings plans, all of them taking a hit.
And, you know, the big fear on Wall Street is that the Federal Reserve is going to have to step up the war on inflation by raising interest rates even more aggressively. But the more The Fed does, the greater the risk they accidentally cause a recession.
Altogether, said Egan, “cost of living is going up. Stocks and consumer sentiment are going down. That is not a good recipe for the president or his party heading into the midterm elections.”
Watch above, via CNN.
