Higher Interest Rates Are Coming as Most Voters Blame Biden for 'Astounding' Inflation

Here they come. Higher interest rates. Record inflation in November has forced the Federal Reserve's hand. 

American households have been hit hard by ongoing spikes in the cost of living, and voters say the buck on this one stops at the president's desk.

A poll by Fox Business shows most voters think Biden is making inflation worse. Two-thirds say inflation has caused them financial hardship.

The Producer Price Index – a key indicator of inflation – is nearing double-digits. "9.6 percent Producer Price Index is astounding," says economist Dan Celia. "And the vast majority is not temporary. It's here to stay."

Consumer price inflation is currently at a 39-year high, rising nearly 7 percent over the past year.

• Food prices are up 6.4 percent.
• Gas prices are up 58 percent.

Federal Reserve Chair Jerome Powell announced Wednesday the Fed is changing to a course that would likely mean higher interest rates in the first half of next year. Powell blamed the inflation on COVID.

"While the drivers of higher inflation have been predominantly connected to the dislocations caused by the pandemic, price increases have now spread to a broader range of goods and services," Powell said.

But Celia says the cause is much simpler. 

"We've had money too cheap, too fast, too long, and it continues to devalue the dollar," Celia explained.

Polling also shows a majority of voters believe Biden's proposed social spending plan known as Build Back Better would push inflation even higher and hurt the economy. 

READ 'Build Back' Bill Adds 87,000 IRS Agents, Cuts Money for Hospitals in Red States: 'It's Mean-Spirited'

The White House hoped to pass the $2 trillion package by Christmas, but it now looks likely to be delayed until next year. A big reason is the opposition from Democratic Senators Joe Manchin and Kyrsten Sinema who believe the big spending bill will further damage the economy by causing even more inflation. 

Biden and Manchin had a rocky meeting at the White House Wednesday.

Sen. Mike Braun (R-IN) told CBN News, "It's a question of how much their own party is going to end up being the roadblock to (the social spending bill). And thank goodness we've got a couple of moderate Democrats left because if it weren't for Manchin and Sinema, this would already be a done deal." 

Celia believes inflation is going even higher than November's 9.6 percent on the Producer Price Index.

"I would suspect by the end of December, we get that number in January, it's probably going to be double digits," Celia said.

Most Federal Reserve officials expect to raise short-term interest rates by one-quarter of a point at least three times next year to help rein in inflation.