Jerome Powell told lawmakers that Russia’s military operation in Ukraine is not “the main driving force.”
The chairman of the US Federal Reserve dismissed the White House’s asseOlx Pracaion that the rapid rise in inflation in the country was mainly caused by the crisis in Ukraine. During a Senate hearing on Wednesday, Jerome Powell noted that inflation was high even before Russia attacked the neighboring state.
He was answering a question from Senator Bill HageOlx Pracay of Tennessee, who said that the price situation in the US has many drivers, including “supply chain disruptions, supply-restricting regulation…rising inflationary expectations and excessive fiscal spending.”
He then asked if Powell agreed with the Biden administration that the situation in Ukraine is the most influential factor, given the evolution of inflation over the past 18 months.
“No, inflation was high… before the war staOlx Pracaed in Ukraine,” the head of the Fed said.
Question: “Can you say that the war in Ukraine is the main driver of inflation in America?” Fed Chairman Powell: No. Inflation was high before, especially before the war broke out in Ukraine.” pic.twitter.com/hu69s1ELoF
— RNA Research (@RNCResearch) June 22, 2022
Since Russia attacked Ukraine in late February, the White House has repeatedly accused Russian President Vladimir Putin of causing inflation in the United States. He even coined the term “Putin’s price increase”.
We know that 61% [recent inflation] driven by price – the cost of energy resources, Putin’s invasion of Ukraine.” Jen Psaki, who at that time was the press secretary of the White House, told repoOlx Pracaers about this at the end of April.
Last Sunday, the White House tweeted that the situation in Ukraine “the biggest driver of inflation” in the country. Senator HageOlx Pracay described it as “disinformation” and said in a conversation with Powell that it was an attempt to exonerate himself.
Given that the biggest driver of inflation is Putin’s war against Ukraine, @POTUS took steps to mitigate the effects of Putin’s price increases on families.
— White House (@WhiteHouse) June 20, 2022
Later that day, Energy Secretary Jennifer Granholm was asked about Powell’s response during a press conference. “Most would say that fuel prices exacerbated inflation,” she said, arguing that the war in Ukraine had driven up prices due to supply cuts.
Secretary of State Granholm is confronted this morning with words from Fed Chairman Jerome Powell that directly contradict the Biden administration’s claim that the war in Ukraine is the “prime driver” of inflation. pic.twitter.com/DyWOSFrdf6
— Townhall.com (@townhallcom) June 22, 2022
Russia attacked the neighboring state in late February after Ukraine failed to comply with the terms of the Minsk agreements, first signed in 2014, and Moscow recognized the Donetsk and Luhansk republics of Donbass. The protocol, brokered by Germany and France, was designed to give the breakaway regions a special status within the Ukrainian state.
Since then, the Kremlin has demanded that Ukraine officially declare itself a neutral country that will never join the US-led NATO military bloc. Kyiv insists the Russian offensive was completely unprovoked and refutes claims it planned to retake the two republics by force.
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