from WFAA
Breitbart Business Digest: Inflation is Too Hot for the Fed to Cut Despite Sluggish Growth
by John Carney
Breitbart.com
The GDP Report Snuffs Out the Dream of a Soft Landing
The pace of economic growth in the first three months of the year was far more sluggish than anyone expected—and inflation was much higher.
The report suggests that the soft-landing scenario—solid growth and steadily falling inflation—is dead. We’re now looking at a no-landing or possibly even a hard landing.
Gross domestic product (GDP), the government’s official scorecard for the economy, grew at a paltry 1.6 percent annual pace in the first quarter. That’s a big slowdown from the 3.4 percent pace in the fourth quarter of last year and a reminder that the pace of economic growth can turn suddenly and unexpectedly.
85% of New Yorkers Say Grocery Costs Are Rising Faster Than Their Income
by Olivia Rondeau
Breitbart.com
A whopping 85 percent of New Yorkers say that the cost of food is rising faster than their income in a poll conducted amid the grocery affordability crisis.
The poll, released by No Kid Hungry New York on Tuesday, also found that nearly half — 47 percent — of respondents are having a “much harder” time affording food.
A significant chunk of people have altered their shopping habits due to price inflation, with 51 percent going to a less convenient store because it was cheaper and 26 percent spending more than 30 minutes searching for coupons and discounts.
The choices consumers are making have changed as well, with over half of the respondents saying they’ve purchased less protein — or none at all — to be able to afford groceries, and just under half saying they bought less or no fresh produce.
Inflation Surge Has Put Off Rate Cuts, Hurt Stocks. Will it Still Slow in 2024?
by Paul Davidson
USA Today
Since a key inflation report this month showed an unexpected surge in consumer prices, hopes for a flurry of interest rate cuts this year have dimmed, the stock market has tumbled and an upbeat mood on the economy has soured a bit.
But inflation is still on course to gradually ease this year and in 2025, top forecasters say. The recent price acceleration largely centers on a few categories, such as rent, car insurance and medical care.
While some economists say the cost of such services will continue to rise sharply in 2024, others expect a slowdown that could still allow the Federal Reserve to lower interest rates more than markets now anticipate.
U.S. Stocks End Flat Ahead of Key Inflation Data
by Agence France Presse
Barron’s
Wall Street stocks treaded water Wednesday as markets awaited key US inflation data while digesting mixed corporate earnings.
Briefing.com analyst Patrick O’Hare pointed to a “little bit of caution” ahead of an inflation reading due Friday that is closely watched by the Federal Reserve.
O’Hare also said investors were waiting for earnings reports to come from Facebook parent Meta, Amazon and other tech giants.
The Dow Jones Industrial Average ended down 0.1 percent at 38,460.92.
Three Portfolio Steps to Take While You Wait for Inflation to Fall
by Craig Rickman
Finimize
Without a doubt, US inflation is milder now than it was, say, a year ago. But it’s not quite as mild as the Federal Reserve (the Fed) would like it to be. In fact, in recent months it’s moved further from that mark, heating up instead of cooling. And, of course, that means the Fed – which jacked up interest rates in its battle against inflation – will likely keep those borrowing rates higher for longer.
The situation has reshaped the outlook for markets and that should send you a message: don’t just sit there. When there’s a shift in the economic climate, it’s time to check that you’re doing the right things – or perhaps more importantly, swerving anything harmful.
Inflation Warning: Prepare Yourself for Even More Inflation
from King World News
People need to prepare themselves for even more inflation that will be absolutely brutal for those who are already struggling.
April 24 (King World News) – Gregory Mannarino, writing for the Trends Journal: Over the weekend CON-gress approved another $95 billion dollar foreign “aid” package, which is in reality a weapons package, for Israel, Ukraine, and Taiwan. The measure passed with OVERWHELMING bipartisan support—and YOU LOSE.
Moreover, and just in case you were wondering if this will be the last time that CON-gress will be doing something like this, the answer is flat out no.
This new $95 billion is just the latest installment with much more going out…
Gold Steadies as Markets Await Inflation Data, Fed’s Next Move
by Gary Wagner
Kitco
Gold futures regained some stability on Tuesday, trading down just 0.23% after a sharp $60 decline in the previous session. The April 2024 contract touched an intraday low of $2,304.60 before recovering to $2,335.57 as of 5 PM EDT.
[…] Monday’s sell-off was fueled by easing geopolitical tensions in the Middle East after Israel’s retaliatory strikes against Iran did not escalate further conflict between the two nations. With fears of further military action between Israel and Iran dissipating, gold’s safe-haven demand took a hit.
However, all eyes are now on the upcoming U.S. inflation report scheduled for this Friday. The Personal Consumption Expenditures (PCE) data, which is the Federal Reserve’s preferred inflation gauge, could shape expectations for the central bank’s next policy move.
Biden Deep Underwater On Top Issues of Inflation, Immigration
by Nick Gilbertson
Breitbart.com
President Joe Biden’s approval rating is deep underwater on what Americans rated as their top two issues in an Economist/YouGov poll.
The poll, published on Wednesday, asked 1,651 U.S. adult respondents to pick the most important issue for them seven months away from the election. The top response was inflation or prices at 24 percent, while the second most popular choice was immigration at 14 percent.
[…] Moreover, 97 percent of all respondents tabbed inflation as “important,” with 77 percent saying it is “very important.” Similarly, 85 percent consider immigration an “important” issue, including 56 percent who see it as “very important.”
But Biden’s approval ratings on these fronts are more than 30-points underwater. Only 29 percent approve of his handling of inflation and prices, while 62 percent disapprove of his performance, including 49 percent who “strongly” disapprove.
Carney On ‘Kudlow’: We Need a National Inflation Day Protest This June
by Rebecca Mansour
Breitbart.com
The decades-long success of Earth Day protests in motivating political action on environmental issues has inspired Breitbart Economics Editor John Carney to call for a national Inflation Day protest this June to demand policy change on the most pressing issue for Americans.
Carney floated his idea during an interview with Fox Business host Larry Kudlow on Monday, which also happened to be Earth Day. Despite President Biden’s policy focus on climate change, recent polling shows that Americans are far more concerned about inflation, Carney explained.
“Americans don’t care about climate change,” Carney told Kudlow. “It’s something that they’re being told will happen 50 to 100 years from now by any realistic measure. But inflation is the issue they’re facing right now. The border crisis is the issue they’re facing right now.”
Biden’s Old ‘0% Inflation’ Comment Comes Back to Bite as McKinsey Says New Biggest Splurge for U.S. Consumers is Groceries
by Caleb Naysmith
Yahoo! Finance
It’s an issue President Joe Biden has to grapple with as his reelection campaign gears up, especially given that 65% of Americans remember the economy as good under former President Donald Trump, according to the poll.
In August 2022, Biden announced “zero inflation” at a time when the consumer price index (CPI) reported it was 8.5%. While he was referring to 0% month-over-month inflation at the time, it rubbed many the wrong way given the negative perception of the economy, with one Republican senator calling the claim “gaslighting.”