Monthly and Annual Rates Stay High Despite Biden's Claim on Inflation Decline. The president sidestepped addressing the acceleration in monthly prices but admits there's still much work to do to ensure more steady and stable growth.
The U.S. inflation rate rose to 6.4% in January, slightly down from December's 6.5%. The reading indicates a long, stubborn journey for inflation's deceleration, possibly forcing the Federal Reserve to maintain or raise rates. The reading also comes as the Fed weighs how many further hikes it will make before any pause.
Republican's Demand for Spending Cuts Amid Biden's Standoff on Debt Ceiling
President Biden braces for a showdown with Republicans over raising the federal debt ceiling. Republicans are demanding spending cuts as a condition of increasing the borrowing cap.
Biden warns that some Republicans are threatening to default on the full faith and credit of the U.S., creating economic chaos in the event of a default. The Treasury Department has begun taking "extraordinary measures" to avoid breaching the debt ceiling and expects them not to run out before June.