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News / Politics

Manchin cites inflation, roiling budget talks

By ALAN FRAM, Associated Press
Published: July 13, 2022, 6:17pm

WASHINGTON — Sen. Joe Manchin roiled his budget talks with Democratic leaders anew Wednesday, saying the latest inflation surge makes him “more cautious than I’ve ever been” about agreeing to federal spending increases that could drive consumers’ costs even higher.

The West Virginia Democrat, who single-handedly killed Democrats’ roughly $2 trillion, 10-year social and environment bill before Christmas, has been bargaining with Senate Majority Leader Chuck Schumer over a new economic package that would be around half that size. But Manchin said grim new inflation figures meant the energy, tax and health compromise he’s been discussing with the New York Democrat must be reviewed.

“Everything needs to be scrubbed, anything that can be inflationary,” Manchin told reporters. He said that while agreed-on provisions aimed at containing pharmaceutical prices should remain, “Is there anything more we can do? I don’t know. But I’m very, very cautious.”

It was unclear what impact Manchin’s comments would have on his closed-door talks with Schumer, which have shown progress lately. But they suggested he believed the day’s inflation report strengthened his leverage in that bargaining and, beyond that, in winning enough Democratic votes to push any agreement through the tightly divided Congress. Unanimous opposition seems certain from Republicans, who say the emerging plan’s spending and tax increases would worsen inflation.

Shortly after the government reported early Wednesday that the consumer price index has grown by 9.1 percent this past year, Manchin released a statement citing “the pain families across the country are feeling.” It was the largest annual inflation increase in four decades.

“No matter what spending aspirations some in Congress may have, it is clear to anyone who visits a grocery store or a gas station that we cannot add any more fuel to this inflation fire,” Manchin said.

Other Democrats contest Manchin’s assertion that the measure under discussion would make inflation worse. They say it would contain costs like drug prices and use half its roughly $1 trillion price tag to reduce government debt.

Experts cite many factors for this year’s inflation increase including the trillions Washington has spent on pandemic relief.

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