What Inflation Has Looked Like Under Every President From Eisenhower to Biden
How big of a problem is inflation? According to the most recent polls from Pew Research Center: Very big.
Americans ranked inflation at the top of the list for problems facing the country, with 62% of respondents describing it as a “very big problem.” Twenty-nine percent described it as a “moderately big problem,” 8% said it was a “small problem” and only 1% claimed it was “not a problem at all.”
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Other concerns that ranked lower in the “very big problem” category included healthcare affordability (57%), gun violence (49%), climate change (36%) and unemployment (25%).
If inflation is considered to be such a big problem by a majority of Americans, then it’s probably on people’s minds when they head to the ballot box. But how much influence do U.S. presidents actually have on inflation rates?
While the president does have a significant amount of power over certain decisions that affect the economy, it’s difficult to pin macroeconomic successes or failures on a single leader.
Presidential decisions related to tax cuts, budgetary plans, stimulus packages and other spending initiatives are often intended to nudge inflation in a certain direction. But when unexpected external events come into play — like wars, supply chain issues or natural disasters — these plans can get off track.
Inflation was 2.9% as of July, the lowest it has been since 2021. For comparison, let’s see what inflation has looked like under every president since Dwight D. Eisenhower.
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Dwight D. Eisenhower (1953-61)
Average Annual Inflation Rate: 1.4%
Eisenhower oversaw a below-average inflation rate compared to the presidents that followed. His presidency was significantly impacted by the end of the Korean War in 1953, which helped stabilize the inflationary pressures of a wartime economy.
Eisenhower aimed for economic growth without inflation and was conservative about spending programs. His main goal was to maintain a balanced budget. For example, he avoided excessive military and government spending to build a budget surplus that could be used to control inflation.
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John F. Kennedy (1961-63)
Average Annual Inflation Rate: 1.1%
JFK’s short-lived presidential term was characterized by a low average inflation rate of 1.1%. He’s credited with ending the 1961 recession through heavy deficit spending in the form of more than $1 billion in highway aid funds, farm price supports and G.I. life insurance dividends.
Significant tax cuts, such as reducing the top marginal tax rate from 91% to 70%, were aimed at boosting consumer and business spending. Combined with loose monetary policies that featured low interest rates, these strategies helped fuel economic growth while holding back inflation.
Lyndon B. Johnson (1963-69)
Average Annual Inflation Rate: 2.6%
Lyndon B. Johnson continued Kennedy’s expansionary fiscal policies that led to increased consumer spending and business investments. He also increased government spending programs aimed at improving social welfare. In 1965, when the U.S. entered the Vietnam War, military spending increased costs, leading to inflationary pressures.
Other factors, like a tight labor market and resistance to tax increases, meant that while the average inflation rate throughout LBJ’s presidency remained below average compared to the other presidents on this list, inflation rose toward the end of his term, peaking at 5.75% in 1969.
Richard Nixon (1969-74)
Average Annual Inflation Rate: 5.7%
Although he inherited an inflationary economy from the start, Richard Nixon’s term experienced further increases in inflation. Increased spending related to the Vietnam War put a strain on the federal budget.
In 1971, Nixon froze wages and the prices of goods for 90 days in an effort to keep inflation in check. While it worked in the short term, it led to sharper rises in inflation over the next several years.
Overall, Nixon’s term is categorized as a period of stagflation, in which high inflation was coupled with stagnant growth and high unemployment rates.
Gerald Ford (1974-77)
Average Annual Inflation Rate: 8.0%
One of Gerald Ford’s first moves in office was to declare war on inflation. He started the Whip Inflation Now program in 1974, which focused on anti-inflationary initiatives for businesses and consumers.
Ultimately, his program didn’t win the fight against inflation. External factors such as the Organization of the Petroleum Exporting Countries’ 1973 oil embargo and the weight of the previous administration’s stagflation period proved to be too great a challenge for Ford’s anti-inflation programs, and he left a struggling economy to his successor.
Jimmy Carter (1977-81)
Average Annual Inflation Rate: 9.9%
Jimmy Carter walked into a challenging economic climate when he took over for Ford, and Carter could do little to stop inflation from increasing further. His presidency was marked by the highest average inflation rate compared to any other president on this list.
Some of the various factors that affected inflation during this period include continued stagflation from previous administrations, the 1979 oil crisis that led to huge spikes in gas prices, a lack of confidence in governmental institutions and a global economy that was also experiencing inflationary pressures.
Ronald Reagan (1981-89)
Average Annual Inflation Rate: 4.6%
When Ronald Reagan took office, the country was reeling from more than a decade of high inflation and poor economic growth. Reagan and his administration advocated for tax cuts, reduced social spending, increased military spending and fewer regulations for businesses.
These policies became known as Reaganomics, and they were successful at combating high inflation. From 1980 to 1988, inflation dropped from 13.5% to 4.1%.
George H.W. Bush (1989-93)
Average Annual Inflation Rate: 4.3%
Inflation during George H.W. Bush’s term remained moderate. The country was still adjusting to the Reagan administration’s lower inflation rates when the onset of the Gulf War in 1990 led to rising oil prices and increased political tensions. Then, the Savings and Loan Crisis caused the economy to enter a recession that same year.
While he had built his election campaign around a promise to not raise taxes, Bush was forced to increase taxes in 1990 to address a budget deficit caused by these economic factors.
Bill Clinton (1993-2001)
Average Annual Inflation Rate: 2.6%
Bill Clinton’s presidential term oversaw an inflation rate that was the lowest it had been since the Kennedy administration. The economy grew steadily at an average rate of 4%, the median family income increased and unemployment hit its lowest level in more than 30 years.
As a result of deficit reduction legislation, the government created a budget surplus of $237 billion and reduced the national debt. Clinton presided over a relatively peaceful period without any major conflicts to upset the economy, and his term is looked at positively in terms of economic stability.
George W. Bush (2001-09)
Average Annual Inflation Rate: 2.8%
George W. Bush’s term was characterized by periods of recession — first in 2001, then in 2008 — which kept inflation in check. Shortly after he entered office, uncertainty caused by the terrorist attacks on Sept. 11, 2001, contributed to a further slowdown in the economy.
To stimulate growth, Bush implemented a variety of tax cuts and tax relief programs that helped increase spending and lower interest rates. However, the low interest rates played a big part in the housing market boom and subsequent crash that was a major factor in the Great Recession of 2007 to 2009, when inflation plummeted and the economy experienced deflation.
Barack Obama (2009-17)
Average Annual Inflation Rate: 1.4%
Barack Obama took office in the middle of the Great Recession. Prices continued to rise and outpaced wage growth, at only 2.0%, during his first term. To stimulate the economy, Obama introduced the American Recovery and Reinvestment Act, which included $831 billion in government spending.
Obama attempted to grow the economy without increasing inflation throughout his term, and inflation did remain low even in spite of global uncertainty on the back of the Great Recession.
Donald Trump (2017-21)
Average Annual Inflation Rate: 1.9%
Donald Trump’s presidency began during a period of economic recovery following the Great Recession. He immediately signed the Tax Cuts and Jobs Act in 2017, which aimed to further stimulate growth by reducing corporate and individual tax rates.
His term’s economic record was heavily impacted by the COVID-19 pandemic, which had a drastic negative effect on all aspects of the economy. In response, Trump passed the $2 trillion Coronavirus Aid, Relief and Economic Security Act, which is best known for the cash grants that provided financial relief for individuals and businesses. Despite the challenges of the pandemic, inflation remained low, on average, throughout Trump’s presidency.
Joe Biden (2021-24)
Average Annual Inflation Rate: 5.7%
While Joe Biden’s presidency isn’t over yet, it has been characterized by a period of high inflation. During the early parts of his presidency, inflation peaked at a four-decade high of 9% in 2022, before falling back down to around 3% in 2024.
Global economic factors like ongoing supply chain issues following the pandemic and rising energy costs due to the war in Ukraine have played a major role in shaping the inflationary context of Biden’s presidency.
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This article originally appeared on GOBankingRates.com: What Inflation Has Looked Like Under Every President From Eisenhower to Biden