Biden takes credit for Target grocery price cuts

Earlier Monday, Target announced it would cut prices on about 5,000 items, including grocery items such as bread, fruits, vegetables, milk and meat. The company said cuts to 1,500 products have already taken effect, with thousands more to come over the summer.

This is timely news for Biden, who has been waging a campaign of corporate pressure on various government agencies over the past several years.

With the November election less than six months away, Biden is now seeking voter approval for that corporate war, especially as he tries to sell a tough economic pitch that could help consumers as his policies feel some of the higher costs of living.

Early national polls showed voters blamed Biden for the persistence of post-pandemic budget restraints. In turn, the president blamed big companies for keeping prices artificially high even as their production costs fell.

“President Biden’s top economic priorities are fighting inflation and reducing costs for the American people,” White House spokesman Andrew Bates wrote in a memo Monday. “Resisting corporate price gouging is at the heart of that fight.”

In the case of grocery chains, corporate repression is particularly virulent.

Last week, A Letter For Biden, Democratic lawmakers accused him of price fixing at grocery stores and urged him to take executive action to lower food prices.

A March report Federal Trade Commission He said grocers are taking advantage of supply chain disruptions to raise prices and keep them high. The FTC also prosecuted an attempted merger between grocery giants Kroger and Albertsons. requested It restricts competition and results in higher prices for consumers.

The moves come as Biden routinely attacks companies for “price gouging” and “shrinkage inflation.”

In March, Biden launched a strike force on unfair and illegal pricing jointly led by the FTC and the Justice Department’s antitrust division to address his corporate pricing complaints.

Now, Biden is trying to tie his policies to Target’s price cuts, helping to make a connection to voters and the economic relief they could soon feel.

Aside from the political opportunity for Biden, Target’s announcement helps solidify an economic signal that the tides of corporate pricing power are finally starting to turn.

The latest Consumer Price Index showed grocery prices fell 0.2% between March and April.

Sectors are beginning to signal that a long-awaited rebound in consumer spending is taking hold after years of sticky inflation.

Along with Target, growing consumer price fatigue has prompted companies like Wendy’s and McDonald’s to offer lower-priced food options to keep budget-pressed customers in their stores.

“We know consumers are under pressure to make better use of their budgets, and Target can help them save even more,” Rick Gomes, Target executive vice president and chief food, essentials and beauty officer, said in a release announcing the cuts.