The newspaper "The Hill" revealed that the administration of US President Joe Biden is facing sharp criticism from politicians and businessmen after the unprecedented rise in inflation and prices in the United States.
The American newspaper pointed out that inflation bumps are hitting the American economy as it attempts to recover from the Corona virus pandemic, which has alarmed the business community and prompted Republicans to reposition themselves as a fiscally responsible party heading into the debt ceiling battle.
The newspaper pointed out that while the Biden administration defends itself by saying that rising inflation is a “temporary thing,” Fed officials expect inflation to continue to rise to 3.4 percent in the next few months, compared to 2.4 percent just two months ago.
Republican lawmakers are seeing government spending and inflation spiraling out of control, and Republican Study Committee Chairman Jim Banks this week sent a memo to members of the Republican Party's largest caucus on the Capitol outlining demands heading into a battle over raising the debt limit.
Failure to reach an agreement on the debt ceiling could result in the US government defaulting on its debts, a move that could potentially lead to chaos in the global financial system.