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Biden fuming about soaring inflation, privately doubted Iowa trip to talk lower gas prices: Report

Biden ‘asked senior staff what the ‘purpose’ was for going to Iowa to talk about trying to lower gas prices while raging in his inner circle for rising prices’

  • President Biden was reportedly unhappy with a White House strategy to combat rising gas prices, but promoted it publicly in Iowa, according to WaPo
  • In April, the White House expanded sales of 15% ethanol blended gas
  • While intended to be slightly cheaper, Biden was reportedly concerned that the financial benefits outweigh the environmental risks
  • At the time, average gas prices were $4.10 – while now they are above $5
  • Meanwhile, inflation rose 8.6% last month, according to the latest data

While President Joe Biden visited an Iowa biofuel plant in April to publicly tout it as a possible solution to higher gas prices, a Monday report claims he privately expressed doubts about the strategy.

Biden spoke on behalf of the Menlo, Iowa plant, when the White House announced it would allow sales of ethanol-blended gasoline, known as E15, during the summer season from June 15 to September 1, despite known environmental risks.

“I’m here today because homegrown biofuels have a role to play right now – right now – as we work to bring prices under control to lower costs for families,” the president said during his April 12 address. Iowa.

But behind the scenes, Biden feared the initiative would do more harm than good — it would have little impact on Americans’ pain at the pump while also negatively impacting his climate agenda, two people familiar with the matter said. . Washington Post

Secretary of Agriculture Tom Vilsack is said to have convinced the president that it would at least help the Midwest, where the biofuels are produced.

At the time, national average gas prices had risen to $4.10 a gallon.

Inflation had risen by 8.5 percent in the previous month and declined slightly to 8.3 percent in April.

About two months later, the average cost of a gallon of gasoline hit consecutive daily records, rising more than $5 over the weekend.

President Biden publicly promoted the use of biofuels, even though he privately expressed his hesitation and had to be talked into the strategy by Secretary of Agriculture Tom Vilsack, the Washington Post reports.

President Biden publicly promoted the use of biofuels, even though he privately expressed his hesitation and had to be talked into the strategy by Secretary of Agriculture Tom Vilsack, the Washington Post reports.

As of Monday, the price is $5.01. In parts of California, the cost is over $7 a gallon.

And inflation hit a 41-year high of 8.6 percent in May, according to the most recently available Labor Department data released last week.

Privately, Biden is increasingly outraged at the toll the rising costs are placing on the land.

As a sign of all the attention the administration is paying to rising costs, the Post reports that top White House officials such as Chief of Staff Ron Klain have been directing agencies and departments to find ways to counteract the surge.

It is a far cry from the government’s claims earlier this year that inflation was only “transient.”

Biden told host Jimmy Kimmel in an interview last week: “Inflation is the bane of our existence.”

But the government insists on remaining optimistic, rejecting claims that the country could soon slip into recession with no end in sight other than skyrocketing prices.

Last week, Treasury Secretary Janet Yellen denied that a recession was imminent and stressed that consumer spending remained “good”.

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However, she admitted that it is “unlikely” that gas prices will fall any time soon.

Barack Obama’s former economic adviser Larry Summers questioned Yellen’s denial, claiming a recession could “become within the next year.”

“I think there is definitely a recession risk next year. And I think given where we’ve come, it’s more likely that we’re going to have a recession within the next two years,” Summers said on CNN’s State of the Union Address.

‘We can handle that. We’ve had them throughout the country’s history. We have to be prepared and react quickly if and when it happens.”

In a more direct jab to Yellen, Summers added, “But I think a year ago the optimists were wrong in saying we wouldn’t have inflation.”

“And I think they’re wrong now — if anyone is sure we’re going to avoid a recession.”

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