As of the end of Jun, US inflation is at a 2-yr low, giving fresh hope that the Fed will wrap up its most aggressive rate hikes in decades. The CPI rose 3% in Jun, the lowest in 2 decades. Excluding gasoline/ food, The core inflation rose 4.8%, the lowest since 2021
Start of pandemic triggered inflation: it's transitory inflation A year in: it's not transitory, inflation is here to stay, it's a new normal Today: chart clearly shows it's transitory June Inflation Report: Inflation Continues to Cool - The New York Times (nytimes.com)
The head of BLS (the department that releases data) is a trump nominee. Please do research. Private companies have calculated American inflation to be at 2% so the 3% number is actually higher. The full cpi report is out on the website for each category https://www.bls.gov/cpi/
Thanks. Would appreciate some granularity, but that's a start. It does feel like a very easy goalpost to move around however one pleases which makes me uneasy.
Inflation has been calculated the same method for decades. Not sure how the goal posts are easy to move when it's the exact same formula. The people who calculate inflation are confirmed by the senate. It's as professional as you can be
You meant from report to report? There have been some changes. Wiki has a good summary of the changes. I think the last major changes were made in 1999. https://en.wikipedia.org/wiki/United_States_Consumer_Price_Index
?? Powell has said he will do everything he can to get inflation to 2%. 'Transitory' means the average American can not afford housing. Huge W
The Fed is aiming for 2% PCE by 2025. Whoo Baby Steps!! Thirty dollar Goremay Hand Crafted Artisanal Bhurger for lunch? That's progress if you assume they won't overcorrect yet again the other way and bailout entities that have no business being bailed out.
Housing affordability was an issue before the pandemic. SFH is certainly a major issue but all the apartments we've built the last few years are causing rents to stabilize. We have a huge Gen Z and Millennial generation that wants houses and a huge boomer generation that doesn't want to sell. On top of that, you have zoning across much of the country that favors low density sprawl and/or restricts housing.
We are no doubt going to be in an era of higher interest rates than we had from 2008-2020 or really going back to the mid 90s- 2020. These things usually occur in supercycles. I probably come off as more Fed friendly, but I just don't view them as the boogeyman as some do. I think austerity is and was a terrible idea in response to the GFC crisis that pretty much amounted to sabotage, much like the recent manufactured debt crisis. As I've said multiple times, the economy is both monetary and fiscal policy. The Fed created a bunch of cheap money and Congress and Obama squandered it; all this major legislation by Biden is the type of stuff Obama should have done with the stimulus instead of wasting his political capital on ACA.
He has. Yet the economy remains robust, and the labor market is still tight. What has changed is that supply has almost fully recovered pre-pandemic, and demand is starting to slow down. The Fed plays a part, but one that might still overshoot, as we know there is a ~12-month lag to an interest rate change. I think the supply issue plays a bigger role. Housing is a good example of this; it is still in short supply relative to demand, even with higher interest rates. Yes, a lower and 12-month declining inflation rate is indeed good news. It indicates a positive trend in price stability and while there are still pockets of high inflation, it’s a win for almost all of us.
yesterday. Consumer Price Index data for Jun was released today, the updated wholesale price index data was released Producer price index has risen just 0.1% in past 12 months---slowing to a crawl---against the estimate of 0.2% https://www.marketwatch.com/story/u-s-wholesale-inflation-slows-to-a-crawl-ppi-shows-83855be2 Wholesale costs often foretell future inflation trends. The increase in wholesale prices over the past 12 months slowed to 0.1% from 1.1% in the prior month. That’s the lowest reading since September 2020.
could not agreed more. Obama was doing everythng he could to fight for the passage of the ACA; after its passage, in retrospect, he was fighting w just one hand, the open hand.
I took 60 Democratic Senators to pass the ACA. It's the most important legislation passed in 60 years. If you want to criticize how he used money whatever, Obama took over a real financial crisis, not a temporarypandemic blip,, but criticizing anything about getting the ACA done is beyond ludicrous
Youre literally making everyones points for them. Obama overlooked a real crisis and did NOTHING to help income inequality. He REFUSED to bail out homowners, he REFUSED to send out stimulus checks to homeowners, he REFUSED to lift up unions, his ftc staff were filled with pro corporate neolibals who were a rubber stamp for big tech. When obama first got elected some in his staff floated sending stimmy checks and obama personally shot the idea down as welfare. Obamas FTC allowed more caproate mergers than literally any other administration. The idea that obama was somehow constrained by republicans and not himself is so funny. Obamas treasury secretary said bidens biggest mistake was passing the stimulus and that we would need 10% unemployment to return back to normal inflation. Obamas economics were some of the worst trickle down economist in the world. Obama surrounded himself with nothing but pro business neo liberals who refused to help the working class. Obama was one of the worst presidents of our lifetime in terms of policy.
