Spiking Inflation: Another Casualty of War
By Yehudit Garmaise
Russia’s invasion of Ukraine will only further raise the costs of everyday purchases, warned Gov. Kathy Hochul on Wednesday, just hours before Russian troops launched their unprovoked attack.
After pointing out that markets are down, and gas prices are up, a reporter asked President Joe Biden, “How economically painful is it going to get for people in this country?”
While the world is swiftly responding to Russia’s ruthless aggression, the president said that he didn’t expect the conflict to last long.
“The notion that this is going to last a long time a highly unlikely: as long as we continue to stay resolved in imposing the economic sanctions we are going to impose on Russia. Period.”
Ukraine’s victimization by Russia, which usually supplies 10% of the world’s oil supply can cause energy costs to spike further for Americans, although the president said "he is closely monitoring energy supplies for any disruptions."
"We have been coordinating with major oil-producing and consuming countries toward our common interests to secure global energy supplies."
President Biden said today, "My administration is using every tool at its deposal to protect American families and businesses from rising prices at the gas pump.
"We are taking active steps to bring down the cost, and American gas and oil companies should not exploit this moment to hike their prices to raise profits."
While said he "will do everything in my power to limit the pain the American people are feeling at the gas pump," he also said that Russia's "aggression cannot go unanswered.
"If it did: the consequences for America would be much worse."
The global economy and supply chain will be negatively affected as offices and businesses shutter in Russia and Ukraine as war breaks out, the Wall Street Journal reported.
Gov. Hochul, on Wednesday, did not rule out suspending New York’s gas tax as among her efforts to respond to ever-rising inflation. The governor also said she had taken measures in her $216 billion budget plan that could put more money in New Yorkers’ pockets.
Among Gov. Hochul’s measures were a $2.1 billion proposal for property tax relief and an income tax cut that would come sooner than previously thought for middle-income earners.
"We can anticipate there is going to be more pressure on prices, upward, unfortunately, as a result of this," Gov. Hochul said.