Yellen: ‘Very High’ Cost of Living Has Existed ‘For a Long Time’, Before Biden
by Ian Hanchett
Breitbart.com
During an interview aired on Thursday’s broadcast of MSNBC’s “11th Hour,” Treasury Secretary Janet Yellen stated that people are unhappy with their personal finances because “the cost of living is very high.” But that’s been the case “for a long time. But the inflation that we saw after the pandemic really exacerbated it for so many people.”
Host Stephanie Ruhle asked, “By most major measures, the economy is doing very well. Yet, most people in America, many people in America still don’t feel good about their personal finances. What do we do about that, how do we solve for it?”
Yellen answered, “Well, I think the cost of living is very high. This has really been true for a long time. But the inflation that we saw after the pandemic really exacerbated it for so many people.
Landing Cancelled? Retail Sales Jump, Prior Months Revised Up, Boost Atlanta Fed GDPNow to +3.4% Inflation-Adjusted GDP Growth
by Wolf Richter
Wolf Street
This demand growth is adding to renewed inflation concerns. The huge waves of immigrants in 2022-2024 are part of this demand growth.
Upon the release of the retail sales data today, the Atlanta Fed’s GDPNow’s estimate for inflation-adjusted GDP growth in Q3 rose to 3.4%, nearly entirely because the inflation-adjusted growth of its consumer spending component got boosted by retail sales today.
Did Inflation Save Us From ‘New Progressive Economics’?
Anti-market progressives dominate the Biden administration. Their policies also help discredit it.
by Christian Britschgi
Reason.com
The Biden era’s high inflation has been terrible for the economy and the country generally. But did it save us from a more permanent progressive takeover of federal government policy?
That’s the tantalizing question hanging over a recent piece published by Vox Senior Politics Correspondent Andrew Prokop that chronicles the rise, and pending fall, of “New Progressive Economics.”
President Joe Biden obviously was not the left’s preferred candidate in the 2020 Democratic primary.
But, as Prokop tells it, he staffed his administration with lots of ultra-progressive wonks and political operatives who wanted to overthrow the Democratic Party’s perceived “neoliberal” consensus on trade and regulation in favor of aggressive anti-trust enforcement, proactive industrial policy, protectionism, and a massive increase in social spending.
Inflation, Deflation, and the Great Wealth Transfer
In this live discussion at Porcfest 2024, Chris Martenson and Jeffrey Tucker critique the economic and monetary policies of recent years, highlighting inflation, taxation, and government manipulation. They explore the lasting consequences of these policies on purchasing power, healthcare, and generational wealth.
by Dr. Chris Martenson
Chris Martenson’s Peak Prosperity
In this conversation, Chris and Jeffrey Tucker discuss the far-reaching consequences of U.S. monetary policy, particularly following the 2008 financial crisis. Chris begins by highlighting how policies of inflation, taxation, and deflation have been used, citing Lenin’s strategy to undermine a capitalist economy. He expresses concern about the state of the country, including the handling of borders, elections, and the younger generations’ ability to build wealth. He criticizes the U.S. Federal Reserve’s decisions, particularly under Ben Bernanke, for artificially inflating housing prices and thereby making homeownership increasingly inaccessible for younger people.
Pennsylvania GOP Senate Nominee Dave McCormick: ‘Bad Policy’ From Biden-Harris, Bob Casey Has Driven Inflation
by Nick Gilbertson
Breitbart.com
Pennsylvania Republican Senate candidate Dave McCormick blasted Sen Bob Casey (D-PA) during their debate Tuesday night for supporting legislation signed into law by the Harris-Biden administration that led to crippling inflation.
While fielding a question about the causes of the 40-year-high inflation reached under the Biden-Harris administration, McCormick pointed to the administration’s extreme spending, which was supported by Casey.
WATCH — Trump Brings Back Jeb Bush “Low-Energy” Label for Pennsylvania Democrat Bob Casey:
The Next Wave(s) of Inflation
by Adam Sharp
Daily Reckoning
Have you ever been caught in a set of gnarly waves at the ocean? The kind where you get smashed by a breaker, come up for air and there’s another big one waiting for you at the surface?
This is a solid metaphor for inflationary periods. They don’t happen like a single big tsunami.
They are typically processes that play out in stages over a decade or more. Policymakers try various fixes, and most fail or only provide temporary relief.
Let’s take a look at the three waves of America’s 1970s inflation…
ECB Rate Cuts: ‘We’re Breaking the Neck of Inflation,’ Says Lagarde
by Piero Cingari
EuroNews
Inflation is on track to hit the medium-term 2% target in 2025. The ECB remains data-dependent, with no pre-commitment to future rate changes.
In a press conference following the European Central Bank’s (ECB) decision to cut interest rates by 25 basis points, President Christine Lagarde hailed the central bank’s progress in tackling inflation, declaring figuratively: “We’re breaking the neck of inflation.”
The deposit facility rate, the rate at which the ECB steers monetary policy, has now fallen to 3.25%, marking the lowest level since May 2023.
Why the ECB decided to cut interest rates
Lagarde highlighted several key factors that drove the ECB’s decision to cut rates in October.
Treasury Secretary Janet Yellen Warns “Sweeping, Untargeted Tariffs” Would Reaccelerate Inflation
by Aimee Picchi
CBS News
Treasury Secretary Janet Yellen will warn in a Thursday speech that the type of tariffs planned by former President Donald Trump, if he were to retake the White House, would reignite inflation and harm the economy.
The remarks from Yellen, which she will deliver when she speaks at 3 p.m. ET today at the Council on Foreign Relations in New York, will take aim at the potential economic impact of Trump’s proposals for 10% across-the-board levies on all products imported into the U.S. from overseas, as well as tariffs of 60% or more on imports from China.
While Yellen didn’t specifically name Trump, she described the dangers of “sweeping, untargeted tariffs” in excerpts of the speech released early Thursday by the Treasury Department.
ECB Cuts Rates as Expected with Disinflation “Well On Track”. Keeps Guidance Unchanged
from Zero Hedge
As expected by literally every economist, moments ago the ECB cut its three key rates by 25bps for the second consecutive meeting, in a show of support to the rapidly shrinking European economy and saying it did so because “incoming information on inflation shows that the disinflationary process is well on track” and adding that “the inflation outlook is also affected by recent downside surprises in indicators of economic activity. Meanwhile, financing conditions remain restrictive.”
Specifically, the ECB cut its Marginal Lending Facility from 3.90% to 3.65%, the Refinancing rate from 3.65% to 3.40% and the Deposit Rate from 3.50% to 3.25%.
Trump Tariffs, Deportations Could ‘Reignite’ U.S. Inflation, Economic Studies Say
[Ed. Note: What a headline… The CBC is Canada’s government-owned-&-operated news source… Let this stupidity really sink in for a minute… DEPORTATIONS cause inflation… Ok, that makes total sense. We have some real ‘Milton Friedman level geniuses’ working at the CBC. These are the same geniuses who told Canadians that food prices were going up due to climate change… It’s easier than admitting your reckless fiscal policy is to blame.]
from CBC News
Food, Rent, Electricity Prices Soar Under Joe Biden and Kamala Harris
by Amy Furr
Breitbart.com
Americans have been feeling the pain of rising costs of everyday necessities since President Joe Biden (D) and Vice President Kamala Harris (D) took office in January 2021.
Prices for food, rent, and electricity have trended upward under the Biden and Harris administration, according to data from the Federal Reserve Bank of St. Louis.
The price of groceries is up 22.6 percent, rent is up 23.2 percent, and electricity is up 28.3 percent.
It is important not note that Harris is campaigning with her running mate, radical leftist Gov. Tim Walz (D-MN), against former President Donald Trump (R) and his running mate, Sen. JD Vance (R-OH), for the White House in 2024.
Global Inflationary Episode Offers Lessons for Monetary Policy
The inflation surge followed a unique disruption to the global economy, but it still offers important lessons for central banks
by Jorge Alvarez, Alberto Musso, Jean-Marc Natal, Sebastian Wende
IMF
Pandemic lockdowns initially tilted demand away from services and toward goods. But this came at a time when unprecedented fiscal and monetary stimulus boosted demand, and many firms were not able to ramp up production fast enough, resulting in mismatches between supply and demand and rising prices in some sectors.
For example, ports were stretched to or beyond their capacity, partly due to pandemic-related staffing shortages, so as demand for goods surged, this resulted in backorders. When economies reopened, demand for services came roaring back and Russia’s invasion of Ukraine sent commodity prices soaring, in turn pushing global inflation to its highest level since the 1970s.