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America's inflation headache gets worse
As prices soar, markets tumble - and the Democrats may be next.
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A supermarket in Los Angeles, California. For the Biden administration, economic frustrations are only deepening.
PHOTO: REUTERS
The Economist
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In an alternate universe, America clearly passed its peak in inflation a couple of months ago; the Federal Reserve is still talking tough but investors have started to expect less monetary tightening, a great relief for stock markets; and US President Joe Biden can at last sense victory over rising prices, arguably the greatest nemesis of his presidency thus far.
Until a few days ago, many thought America would be inhabiting that other world. Alas, a brutal batch of data has awoken them to a more dispiriting reality. Inflation, far from peaking, seems to be gaining altitude, with potentially dramatic consequences for the Fed, for investors and for American politics.
