from McAlvany Financial
The Inflation Reduction Act’s Biggest Winners? Swing States.
Seven states got almost half of the manufacturing funds, but Democrats have done a poor job of claiming credit.
by Oliver Milman and Dharna Noor
Mother Jones
The seven swing states that will decide the upcoming election have received nearly half of the torrent of clean energy manufacturing dollars unleashed by a landmark 2022 climate bill, a new analysis shows, amid stuttering Democratic efforts to translate new factory jobs into political support.
Since the passage of clean energy incentives in the Inflation Reduction Act (IRA), a bill called the “most significant climate law in the history of mankind” by Joe Biden, nearly $150 billion has been announced for a flurry of new American facilities producing electric cars, batteries, and components for renewable energy.
Of this, $63 billion, or nearly half, will flow to just seven states—Arizona, Georgia, Michigan, Nevada, North Carolina, Pennsylvania, and Wisconsin—that form the battleground fought over by Kamala Harris and Donald Trump for November’s presidential election, bringing more than 50,000 new manufacturing jobs, according to an analysis carried out for the Guardian by Atlas Public Policy.
Expert Testimony: Mass Immigration Under Biden-Harris is Driving Up Rents for Americans
by John Binder
Breitbart.com
The arrival of millions of foreign nationals, many of whom are illegal aliens, under President Joe Biden and Vice President Kamala Harris is helping to drive up rents for working- and middle-class Americans, an expert witness told Congress Wednesday.
Center for Immigration Studies Director of Research Steven Camarota told the House Oversight Committee that immigration levels are intrinsically linked to housing costs — particularly in recent years, when research shows that high immigration levels tend to increase rents for Americans.
“Census Bureau data shows that since January of 2021 the number of immigrant-headed households is up 2.4 million, with perhaps 1.4 million of this increase due to illegal immigration,” Camarota said:
Fed’s Favorite Inflation Data Friday Could Sway November Interest Rate Cut Odds
The August PCE report, out Friday, could clarify the Fed’s next rate move ahead of the Nov. 7 FOMC meeting.
by Piero Cingari
Benzinga.com
Market expectations for the Federal Reserve’s next interest rate move could gain more clarity as early as this Friday, when a U.S. government agency releases a key inflation metric closely monitored by policymakers.
The Personal Consumption Expenditure (PCE) price index report, scheduled for release on Friday, Sept. 27, at 8:30 a.m. ET, will provide critical insights into August’s inflation trends.
As the Fed’s preferred inflation gauge, the PCE is seen as a crucial indicator that could influence decisions on whether another rate cut will occur at the next Federal Open Market Committee (FOMC) meeting on Nov. 7.
Bank of America CFO Says Fed Seems To Be Winning Inflation Battle
by Reuters
Reuters.com
Sept 25 (Reuters) – The Federal Reserve seems to be winning the inflation battle in the United States, Bank of America (BAC.N), opens new tab CFO Alastair Borthwick said, days after the central bank cut interest rates for the first time in more than four years.
“The Fed winning the inflation battle is important for the economy. It appears they are winning that battle,” Borthwick said at a conference on Wednesday.
The comments echo Fed Chair Jerome Powell’s view that the country’s bout with high inflation was over. The central bank last week reduced rates by 50 basis points as it shifts focus to sustaining lower unemployment.
‘The Cost of Kamala’: Donald Trump Blasts Skyrocketing Food Prices Hurting Americans
by Amy Furr
Breitbart.com
Former President Donald Trump on Tuesday highlighted the inflation plaguing Americans under Vice President Kamala Harris’s (D) leadership.
In a social media post, Trump compared food prices during his presidency to those under President Joe Biden (D) and Harris, citing the cost of coffee, salmon, potatoes, milk, ham, chicken, cheese, and eggs.
The former president deemed it “The Cost of Kamala” and told social media users that coffee under Trump was $6.99 but now it is $9.99.
Grocery basics such as eggs were $1.99 under Trump but are currently $4.99, according to his post:
Based On Today’s Report, Powell Should Be Biting His Lip On Inflation
by David Haggith
GoldSeek
The rise in inflation that I’ve said we could see by end of summer, continues to look increasingly likely to emerge soon and not like it is going to cut Chairman Powell’s rate cut a break. The US manufacturing report came in at a 15-month low, signaling the economy is not as rosy as indicated.
PMIs disappointed in the early September print with both Services and Manufacturing falling.
Manufacturing actually fell way off, while services put in an inconsequential (so far) blip of a dip:
Fed Governor Bowman Explains Dissent On Rate Vote, Says She’s Worried About Inflation
Fed Governor Michelle Bowman said Tuesday she thought her colleagues should have taken a more measured approach to last week’s half percentage point interest rate reduction.
by Jeff Cox
CNBC.com
Federal Reserve Governor Michelle Bowman said Tuesday she thought her colleagues should have taken a more measured approach to last week’s half percentage point interest rate cut as she worries that inflation could reignite.
Bowman was the lone dissenter from the Federal Open Market Committee’s decision to lower benchmark interest rates for the first time in more than four years. No governor had dissented from an interest rate decision since 2005.
In explaining her rationale, Bowman said the half percentage point, or 50 basis point, reduction posed a number of risks to the Fed’s twin goals of achieving low inflation and full employment.
The Fed Cut the Interest Rate to Bail Out the Treasury
by Daniel Lacalle
Mises.org
The Federal Reserve decided to cut rates by 50 basis points despite what Chairman Powell considers “no risk of a recession or downturn,” a “solid economy,” and a “strong job market.”
After ignoring the impact of monetary aggregates and the warning signs of inflation, the Federal Reserve has breached its price stability mandate for three consecutive years, preferring to prioritize liquidity injections, i.e., printing money, to the recovery of the currency’s purchasing power.
The “higher for longer” policy only lasted eighteen months. Furthermore, the latest reading of the Chicago Fed National Financial Conditions Index indicates extremely loose conditions. In fact, the Fed has never cut rates by so much when financial conditions have been this loose.
This Chart Shows Gold vs. the Stock Market Since Bernanke’s Famous ‘Helicopter Drop’ Speech
Morgan Stanley says lower-quality stocks and commodities will struggle during heavy fiscal spending
by Steve Goldstein
Market Watch
Then, Bernanke noted, gold traded at $300 an ounce. Last week, gold reached a new record high of $2,619.90 an ounce. That is better than the S&P 500 since Bernanke’s speech and most other assets as well.
Dow Jones Rises as Inflation Report Looms; GM Slides On Downgrade
by Scott Lehtonen
Investor’s Business Daily
The Dow Jones Industrial Average and the other major stock indexes rose modestly Monday after factory data, while a critical inflation report looms later in the week. An early mover on the stock market today was General Motors (GM), which dropped on an analyst downgrade.
After the opening bell, the Dow Jones Industrial Average rose less than 0.1%, while the S&P 500 gained 0.2%. The tech-heavy Nasdaq composite moved up 0.3% in early trading.
Early Monday, the 10-year Treasury yield ticked higher to 3.77%. Oil prices rose, with West Texas Intermediate futures trading around $71.15 per barrel.
Among exchange traded funds, the Invesco QQQ Trust (QQQ) was up 0.3%, as the SPDR S&P 500 ETF (SPY) moved up 0.2% after the open.