Will Biden print more federal money and give gas rebates to supposedly clamp inflation?

https://www.washingtonpost.com/us-policy/2022/06/17/biden-gas-white-house/

https://youtu.be/F6PvX625JCs?t=84

https://youtu.be/mPmKPS900lA

Senior White House aides are exploring new ideas to respond to high gas prices and are looking again at some that they had previously discarded, desperate to show that the administration is trying to address voter frustration about rising costs at the pump.

Those efforts, though, come amid early signs of a broader slowdown in the economy, which could ease inflationary pressures but also lead to higher joblessness and slower growth. On Friday, oil prices suddenly dropped to a four-week low — a decline likely to push down gas prices — the latest indicator of a potential recession after the Federal Reserve raised interest rates this week to try to contain inflation.

The week’s staggering decline in the stock market — coupled with weaker-than-expected jobless claims and retail sales data — also reflects the risks in the central bank’s move to crush inflation by tightening monetary conditions. Wall Street recorded its worst week since March 2020, the early days of the coronavirus pandemic, as investors struggle to adjust to the Fed’s dramatic move.

Still, Biden officials are taking a second look at whether the federal government could send rebate cards out to millions of American drivers to help them pay at gas stations — an idea they examined months ago before ruling it out. Aides had found that shortages in the U.S. chip industry would make it hard to produce enough rebate cards, two people familiar with the matter said. White House officials also fear there would be no way to prevent consumers from using them for purchases other than gasoline, according to another person familiar with the discussions. Even if the administration embraces the proposal, it would probably require congressional approval and face long odds among lawmakers wary of spending more money.

Biden aides have also looked in recent days at invoking the Defense Production Act to move diesel and other refined products should localized shortages materialize, two people familiar with the matter said. Diesel prices have risen markedly, posing a major threat to the nation’s trucking and shipping industries, although experts say shortages appear to remain unlikely for now.

But energy markets hinted at the potential downsides of an economy that cools too quickly, with crude oil prices falling on Friday. “The good news is that crude oil prices, which drive gas prices, had a big down day,” said Bob McNally, a former energy official in the Bush administration. “But the reason for it is a bad reason — that people are fearing a recession.”

Gas prices have been one of the most visible signs of inflation. The White House has taken a number of actions to try to address the problem, such as committing to a historic release of the nation’s oil reserves and, on Wednesday, sending a letter to the nation’s refineries calling for more production and criticizing their profits. President Biden has also tried to increase production internationally, prodding the world’s oil producers and coordinating the release from national reserves with U.S. allies.

But those measures appear not to have helped substantially. The average gas price nationally rose above $5 a gallon for the first time this weekend, a roughly 11 percent increase from just last month, according to AAA, although some industry analysts say it could fall back to $4.55 in the weeks ahead. Polling suggests widespread frustration with rising prices, increasing the likelihood that voters punish Democrats this fall and give Republicans control of at least one house of Congress next year.

White House officials have scrambled in recent days to again review all potential federal policy responses. Officials have also discussed telling governors to lower or waive their gas taxes, another person familiar with internal administration discussions said.


We're at the special spot of high inflation or recession. Either way, it's bad for the average folk. Rich people will feel nothing of course.