Charles Mizrahi, financial expert and author of “Wall Street Profits for Main Street Investors,” said that the current inflation is, in large part, due to the Biden administration injecting too much money into the market and will likely influence the midterm elections.
Mizrahi has spent 37 years on Wall Street and now advises people on sound investing practices.
“And the real situation here is that Washington has not been acting fiscally irresponsible since the Biden administration took over in terms of trying to flood the market with more liquidity, which is driving up prices even more, because now you have a whole lot of dollars chasing a whole limited supply of items, and prices are rising,” Mizrahi told NTD’s Capitol Report.
As the U.S. annual inflation rate climbed to 7 percent in December, the highest level since June 1982. New data show that costs in almost every category were higher in the 12 months ending in December.
Food prices surged 6.3 percent, while energy was up 29.3 percent. New vehicles and used cars and trucks soared 11.8 percent and 37.3 percent, respectively. Apparel jumped 5.8 percent, shelter picked up 4.1 percent, and medical care services inched higher 2.5 percent.
Mizrahi believes the current economic challenges, especially the rise in prices for many everyday items, will influence the outcome of the 2022 midterm elections.
“Well, elections are won and lost by the economy, no two ways about it. And best example, of course, Bill Clinton, he took a preceding president who had a 90 percent-plus approval rating after the Gulf War and actually won,” he said.
Top Republican leaders continue to be critical of the policies that they say created the inflation and are telling voters their party can do a better job.
“We have the highest inflation rate in 40 years, causing prices to surge. That increase you see there all happened under Biden’s watch. To put that number in perspective, here is the real impact inflation is having on soaring prices Americans are paying on a daily basis,” said House Minority Leader Kevin McCarthy at a press conference Thursday. “If entrusted with the majority, House Republicans will dedicate our legislative and accountability agenda to focusing on the true needs of the American people.”
Mizrahi said that he can’t say how long it will persist but inflation will continue into the November elections.
“And the Fed is trying to tap the brakes in the economy by all these rate hikes they’re talking about this year, but inflation will be here for a while. I don’t know if it’s transitory at all. If it’s permanent, I really couldn’t tell you, but over the foreseeable future next several months be prepared to pay high prices.”
Andrew Moran contributed to this report.