Biden should lean on small businesses in fight against inflation, industry leader says.
This article was originally written by and appeared on The National Desk and be be found on their website here.
WASHINGTON (TND) — The latest Consumer Price Index report showed that inflation has now hit yet another 40-year high. Consumer prices jumped 8.6% in May year-over-year, though economists predicted inflation peaked back in April.
Instead, prices went up 1%from April to May, largely because of record-breaking gas prices. President Joe Biden addressed the report during a visit to the Los Angeles Port.
He blamed rising inflation on Russian President Vladimir Putin’s invasion of Ukraine and shipping companies' hefty price tags on imported goods, which trickle down to consumers.
The Biden administration looked to lower the prices on imports, urging Congress to take action.
“My administration could continue everything we can to lower the prices to the American people, and the Congress has to act, and they have been of late,” Biden said.
Meanwhile, the abysmal inflation report caused stocks to close on a sour note for the week. The Dow dropped 880 points and the S&P posted its worst week since January was down 2.7% and the NASDAQ sank more than 3%.
The poor performance is putting more pressure on the Federal Reserve to curb inflation. The next half-point rate hike is expected Wednesday but some are questioning if it can be done successfully without pushing the U.S. into a recession.
Javier Palomarez, founder and CEO of the United States Hispanic Business Council, joined the National Desk to discuss rising inflation, its impact on the small business community and the wider economy. (TND)
“The time-honored solution has always been to raise interest rates and slow down the rate of inflation but at the state in which our economy is right now, it's very tentative,” said Javier Palomarez, founder and CEO of the United States Hispanic Business Council. “Obviously they're gonna have to tinker with interest rates, so you know, I wish Chairman Powell all the luck in the world. I’m pulling for him but they are in a tough situation.”
Palomarez says it’s time for the Biden administration to reach out to small businesses and work to take the country from being energy-dependent back to energy-independent.
“No matter what the administration continues to say, they're overlooking what — to me — is a very obvious step and that is talking to the American small business community,” Palomarez said. “They haven't swallowed their pride and put the people in front of the politics and allowed the oil and gas industry to do what it can do, what it's ready to do and what our nation is capable of doing and that is opening up the fuel lines.”
He also encourages CEOs and even consumers to find workable creative solutions to protect their companies, businesses and livelihoods.
“I'm always enlightened by corporate executives and our corporate environment and culture. They're stepping up and there are some bright spots,” Palomarez said. “We should not rely on the federal government to come and save us.”
