Fed Chair Debunks Biden Claim That Putin’s Ukraine Invasion is ‘Biggest Single Driver’ of Inflation: ‘No.’

Federal Reserve Chair Jerome Powell broke with the White House during Capitol Hill testimony on Wednesday when he said that the Russian invasion of Ukraine is not the biggest driving force behind inflation despite President Joe Biden‘s assertions.

At the Senate Banking Committee’s hearing on monetary policy and economic issues, Tennessee Republican Sen. Bill Hagerty asked Chairman Powell about the singularity of Vladimir Putin‘s actions in raising prices on goods and energy in the United States. You know, inflation.

“I realize there are a number of factors that play a role in the historic inflation that we’re experiencing. Supply chain disruptions, regulations that constrain supply, we’ve got rising inflation expectations and excessive fiscal spending. But the problem hasn’t sprung out of nowhere,” said Hagerty. “In January of 2021, inflation was at 1.4%. By December of 2021, it had risen to 7%, a five-fold increase.”

“Now, since the war in Ukraine began in late February, the rate of inflation has risen incrementally, another 1.6% to a current level of 8.6%. So again, from 7% to 8.6%,” he continued. “Given how inflation has escalated over the past 18 months, would you say that the war in Ukraine is the primary driver of inflation in America?”

“No inflation was high before, certainly before the war in Ukraine broke out,” said Powell succinctly.

“I’m glad to hear you say that,” Hagerty replied. “The Biden administration seems to be intent on deflecting blame and as recently as just this past Sunday spread the misinformation that Putin’s invasion of Ukraine is the biggest single driver of inflation. I’m glad you agree with me that that is not the truth.”

On Sunday, the White House tweeted specifically that the war in Ukraine is the “biggest single driver of inflation.” That echoes a theme President Biden has been hammering for some time in calling various bad inflation news “Putin’s Price Hike.”

With the biggest single driver of inflation being Putin’s war against Ukraine, @POTUS has taken action to blunt the impact of Putin’s Price Hike for families.

— The White House (@WhiteHouse) June 20, 2022

In multiple other exchanges, including with Democrat Jon Ossoff on supply and demand, the point that Ukraine is not the principal driver was reiterated. It’s a claim that the administration has been called out for before, including by a former Barack Obama economic adviser.

Watch the clip above, via C-SPAN.

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