Biden prediction that inflation hit 'peak' in December coming back to haunt him

Six months after President Biden said inflation hit its peak, the consumer price index hit a new 40-year high, according to a new Labor Department report released Wednesday. Powell's testimony followed months of the White House painting the skyrocketing inflation as "transitory" and predicting it would come back down in 2022. The numbers have continued to rise, however, and the Federal Reserve has been forced to take a more hawkish approach by raising interest rates. Last month, in the third interest rate hike of 2022, the Fed raised interest rates by 75 basis points, the largest rate hike since 1994. Meanwhile, the Federal Reserve is expected to raise interest rates again, fueling concerns it could spark a recession.