Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios NW Arkansas

Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

President Biden toured a union training center Wednesday before his CNN town hall in Ohio. Photo: Saul Loeb/AFP via Getty Images

A top party pollster and senior adviser to the Biden political team is urging Democrats to confront the problem of rising prices — which she says is starting to bite with voters.

Driving the news: Celinda Lake, who polled for the Biden presidential campaign and still advises Team Biden, told Axios that worries about inflation are coming through loud and clear in both public polls and her own focus groups.

  • "Women voters are really experiencing it, because they're always more focused on kitchen table economics, microeconomics," Lake said.
  • "The key target vote in the 2022 election is going to be non-college-educated women ... because they are the most undecided."

Lake said Democrats can't afford to ignore the inflation issue or hope it goes away; they need to tackle it head on.

  • She's advised Democratic elected officials to make clear to voters that they understand their lived experiences of higher costs of health care and daily goods — and that they have ideas for how to make the cost of living more affordable.

The big picture: While the Biden administration has consistently argued that price increases are only short-term, Treasury Secretary Janet Yellen has revised her inflation expectations. She said in June inflation could reach 3%.

  • Then last week, after June’s Consumer Price Index showed a 5.4% increase, Yellen told CNBC the U.S. economy will see “several more months of rapid inflation,” which would put annualized inflation well above 3%.
  • "I think over the medium term, we’ll see inflation decline back toward normal levels," she said.

President Biden insisted again tonight that price increases are temporary.

  • "The vast majority of the experts, including on Wall Street, are suggesting that it's highly unlikely that long term inflation is going to get out of hand," Biden said during a CNN town hall in Cincinnati. "There will be near-term inflation."
  • Former Treasury Secretary Larry Summers, who has warned about inflation since January, also met with White House officials last week.
  • Despite his concerns, Summers told Axios he doesn't think the $1.2 trillion "hard" infrastructure package being negotiated in Congress will increase inflation.

Between the lines: The White House has subtly altered its communications strategy on inflation in recent weeks. It's gone from mostly avoiding the issue to confronting it directly with coordinated talking points.

  • Biden's top economic adviser Brian Deese tweeted Monday that the administration's approach to competition policy "will lower costs for families."

The other side: The good political news for Biden is that voters aren't yet directly blaming him for rising costs.

Lake and two other Democratic pollsters told Axios that voters are still mostly attributing the higher costs to pandemic-related supply chain problems rather than an overheated economy caused by Biden overspending.

  • That view is bolstered in public polls. Some 27% of respondents in an Ipsos poll said they blamed COVID-related supply chain issues for rising prices.
  • And while inflation might rise the rest of the year, Democrats are more confident it will be retreating in the fall of 2022, when voters head to the polls.

Be smart: The White House is trying to co-opt the inflation charge and argue that Biden's economic proposals will reduce it in the long run.

  • “If we pass the other two things that I want to get done we will, in fact, reduce inflation,” Biden said on CNN.

Go deeper

Federal Reserve will soon ease pandemic-era support

Fed Chair Jerome Powell during a congressional hearing last year. Photo: Stefani Reynolds/Bloomberg via Getty Images

The Federal Reserve hinted Wednesday its full throttle of economic support could start to ease as soon as November (its next policy meeting).

Why it matters: It would be the start of a pivot for the Fed, which unleashed unprecedented measures when the pandemic hit to help rescue the U.S. economy.

14 hours ago - Politics & Policy

Scoop: Dems seek new green deal

Rep. Stephanie Murphy. Photo: Chip Somodevilla/Getty Images/Bloomberg via Getty Images

House Democrats discussed with President Biden on Wednesday a plan to exempt billions of dollars of new climate spending from his requirement that his $3.5 trillion "soft" infrastructure plan be offset with additional revenue.

Why it matters: The accounting proposal — a version of "dynamic scoring" — would dramatically lower the amount of taxes Democrats would need to raise while creating wiggle room to increase the ultimate size of the package.

Special Envoy for Haiti resigns over deportation of migrants and asylum-seekers

Daniel Foote testifies during a Senate Foreign Relations Committee hearing on May 26, 2016. Photo: Drew Angerer/Getty Images

The Special Envoy for Haiti on Wednesday resigned from his position, writing in his resignation letter obtained by PBS that he "will not be associated with the United States inhumane, counterproductive decision to deport thousands of Haitian refugees."

Why it matters: Ambassador Daniel Foote's resignation comes amid heightened anger over the treatment of Haitian migrants and asylum-seekers living in a temporary encampment in Del Rio, Texas — especially after images surfaced of Border Patrol agents whipping at the migrants from horseback.

You’ve caught up. Now what?

Sign up for Mike Allen’s daily Axios AM and PM newsletters to get smarter, faster on the news that matters.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!