AP Photo/Andrew Harnik, File
- Key Republicans are striking a gleeful tone at Biden's latest economic challenge: rising inflation.
- "This is a gold mine for us," Sen. Rick Scott told the Wall Street Journal.
- The GOP views rising inflation as a winning issue for them heading into next year's midterms.
Key Republicans are sounding gleeful that President Joe Biden faces new political headwinds in the form of rising inflation.
"You can see what's going to happen next. We're going to continue to have inflation, and then interest rates will go up," Sen. Rick Scott of Florida, the head of the Senate GOP's fundraising arm, told the Wall Street Journal.
"This is a gold mine for us," he said.
Republicans are stepping up their political attacks against Biden and Democrats with prices rising across the board for used cars, food, gas, and housing, hamstringing the economic recovery. It's partly the product of supply chain bottlenecks snarling the economy amid spiking demand from a massive influx of federal aid reaching households since the onset of the pandemic last year. Spikes in inflation are typically reversed by the Federal Reserve raising interest rates, making it more expensive for businesses and consumers to borrow – and therefore spend – money. Until that happens, there's very little the Biden administration can do to combat this economic phenomenon.
That doesn't mean Americans are patient with rising prices. The White House has long dismissed the threat of inflation as "transitory," meaning it would be short-lived. But prices jumped over 6% in October, pushing inflation to a 30-year high and there's few short-term solutions for the Biden administration. Federal Reserve chair Jerome Powell said he expects inflation to last well into next year, abating once the supply chain is unclogged.
"We still face challenges, and we have to tackle them," Biden said from the Port of Baltimore. "Many people remain unsettled about the economy, and we know why. They see higher prices. They go to the store or go online and can't find what they want."
Republicans view it as a winning issue for them heading into next year's midterms as Biden's poll numbers sag, threatening Democrats with the loss of their narrow Congressional majorities.
The Biden administration argues their $1.8 trillion social spending bill will cut prices for families by expanding access to healthcare, childcare and more.
Yet Sen. Joe Manchin of West Virginia, a key vote in the 50-50 Senate, is warning about an "inflation tax" hitting Americans and wants to slow down the bill's passage.