Current inflation in incontrovertibly a result of the extended ZIRP post 2008. While Trump isn't uniquely responsible, Trump did agitate specifically the keep interest rates low and threatened the Fed when they started raising them. Of course the inflation didn't show up until rates were raised under Biden, but blaming inflation on Biden is wrong. To the extent Biden is responsible for actually raising the rates, he's to be congratulated for doing the right thing and not extending the bubble even longer. Trump, deserves zero praise on the economy.
No. The Fed began raising rates in order to fight the inflation that showed up under Biden.
Under Trump, inflation was low and though I was already retired and was not contributing to it any more, my 401(k) increased by more than 50% under Trump and inflation was negligible. Under Biden my 401(k) has been relatively flat, but with inflation peaking at 9% (which we all know understates what the ACTUAL inflation rate is) I've lost ground. Oh, and my last gas fill up under Trump I paid $1.89, this week after 3 years of Biden, $3.39.
. . . While I'm raking in dough via interest because of the current rates, I'm also paying a lot more for stuff. In general, we are better off having $20 and paying $10 for groceries than we are having $40 and paying $30 for groceries.
I'll just say I agree with Ben here.
Trump was far from perfect - he was spending too much money even BEFORE covid, just like every POTUS of each party before him. But he had plenty of help from members of both parties in the Congress. Biden took Trump's overspending - including massive "emergency" covid spending - made it his baseline, and normalized and increased it. Creating more dollars inflates the currency.
Previous administrations may have set the fire, Biden poured gasoline on it.
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