Republicans attacked the Biden administration over the party on the South Lawn of the White House, featuring a performance by folk rocker James Taylor, on the same day that federal data showed inflation was a higher-than-expected 8.3 percent in August. CNN aired a clip of Biden’s speech before it was cut, with anchors Alisyn Camerota and Victor Blackwell questioning the timing of the event. “There’s this unfortunate screen split right now, with the Dow taking a total hit, down more than 1,200 points, so I feel like it’s hard to be celebratory for some people in the crowd,” Camerota said over footage of Biden speaking in White. House’s widely organized event. Stocks posted their worst day since June 2020 as investors reacted to dismal inflation data. The Dow Jones Industrial Average fell nearly 1,300 points, while the tech Nasdaq fell more than 5 percent and the S&P 500 sank more than 4 percent. “This is the day the White House celebrates the Inflation Reduction Act when we get a new report showing that inflation is still very high,” Blackwell added. “And what we’re seeing on Wall Street is a reaction to that prediction of what’s coming from the Fed.” Mediaite previously covered CNN’s segment. Investors are pricing in a 68% chance the Fed will raise its key interest rate by three-quarters of a percentage point at next week’s meeting. Additionally, they see a 32% chance of a full point increase, after seeing a 0% chance of such an aggressive move just one day earlier. August’s Consumer Price Index showed a higher-than-expected 6.3% increase in core inflation, which excludes volatile food and energy costs. The CPI food index rose 11.4%, the biggest year-over-year increase since May 1979. Biden played down the latest inflation data, saying the results showed “progress” and that prices “were essentially flat” over the past two months. President Biden has faced criticism from Republicans over his party’s timeline.Getty Images Speaking at the White House, Biden touted the Inflation Reduction Act as transformative legislation — though independent analyzes by the University of Pennsylvania’s Penn Wharton Budget Model and others showed the law is not expected to lower prices. “Today offers proof that America’s soul is alive. America’s future is bright and America’s promise is real,” Biden said.
