There are no good choices left for Albanese, only hard ones
Nothing is sticking for the government, which lost control of the economic narrative soon after the budget was handed down.
This was not quite right. The bank has been indicating for some time that government spending at federal and state levels is a contributing factor to rising inflation.
More seriously, Bullock was asked at least three times at her post-rates conference on Tuesday about the prospect of a recession in Australia. Chalmers also faced questions about recession. Both suggested they did not expect one, but the fact everyone keeps asking should set off alarms in the ministerial wing of Parliament House.
Bullock, who as governor now holds a press conference after each RBA meeting under changes introduced by Chalmers, gave the sort of answer that makes the prime minister tear his hair out.
“We are not looking to tip the economy into recession, if we can avoid it. But we do need to get inflation down, and we do have excess demand at the moment,” she said, adding that some people might feel like Australia is in a recession already “because they feel poorer”.
That’s not a reassuring message and not one the prime minister could parry instantly, given he is half a world away at a Commonwealth Heads of Government Meeting in the Caribbean.