The inflation rate in the U.S. showed a further increase of 7.5% also for January 2022. Such an increase in the official consumer price index has not been seen in 40 years.
Since the Fed and the White House do not seem to have an answer to the rising inflation rate, they are now looking for reasons to explain a possible further increase in the inflation rate.
In a speech, U.S. President Biden stated that in the event of a war in Ukraine, American households would also be affected. Rising energy prices could be the result in the event of an escalation
“To be clear, if Russia decides to invade, that would also have consequences here at home. But, the American people understand that defending democracy and liberty is never without cost. This is a cause that unites Republicans and Democrats […] I will not pretend this will be painless, there could be impact on our energy prices. So, we are taking active steps to elevate the pressure on our own energy markets to offset raising prices,” according to Biden.
In addition, CNN wrote that the conflict in Ukraine could increase the inflation rate by 10%. CNN explained this with the oil prices that could rise significantly in the event of a conflict. Agricultural products such as grain and wheat are also expected to increase in price.
The rise in energy prices could then prompt the Federal Reserve to raise interest rates faster than expected, which could hit consumers and stock markets hard.
However, with the recent events in Ukraine, it remains to be seen whether interest rates could be raised at all. The markets are already moving in a negative direction.
In short, the price increases seen last year and this year, especially in the energy sector, are now to be seen under the cover of the Ukraine crisis.
Mistakes in the own policy with the excessive national debt, the endless currency printing, and the shutdown of its own important energy infrastructure like the Keystone Pipeline are once again not mentioned.
It is doubtful whether the American population will fall for the bait and switch.