from JJ Buckner
Former Obama Economic Adviser El-Erian: Green Energy Transition Helped Create Higher Inflation Environment
by Ian Hanchett
Breitbart.com
On Friday’s broadcast of Bloomberg’s “Surveillance,” Bloomberg columnist, economist, President of Queens’ College, Allianz Chief Economic Adviser, and former Obama Global Development Council Chair Dr. Mohamed El-Erian stated that the “sustainable energy” transition has helped create “a world that’s subject to higher inflation” than the world we had before.
After arguing that the 2% inflation number is an “arbitrary” number and going from 3% to 2% isn’t worth it, El-Erian said that “if you were to establish an inflation target today based on the secular issues, and let’s talk about it, the domestic paradigm is changing. We’re no longer in this Washington consensus of deregulation, liberalization, and fiscal prudence.
Multiple Establishment Media Outlets Fact Check Biden’s Repeated False Inflation Claim
by Wendell Husebo
Breitbart.com
At least six establishment media outlets fact checked President Joe Biden’s repeated false claim that inflation was nine percent when he “came into office.”
As initially fact checked in early May by Breitbart News and other media outlets, the Consumer Price Index (CPI) inflation for January 2021, the latest reading when Biden assumed office, was 1.4 percent.
Inflation rose under Biden to historic highs not seen since the early 1980s due in large part to Biden’s massive spending packages, Breitbart News reported:
Inflation is a Policy. Gold Does Not Reflect Monetary Destruction, Yet.
from Zero Hedge
The money supply is rising again, and persistent inflation is not a surprise. Inflation occurs when the amount of currency increases significantly above private sector demand. For investors, the worst decision in this environment of monetary destruction is to invest in sovereign bonds and keep cash. The government’s destruction of the purchasing power of the currency is a policy, not a coincidence.
Readers ask me why the government would be interested in eroding the purchasing power of the currency they issue. It is remarkably simple.
Memorial Day Inflation: Travel, BBQ and Booze All Cost More This Year
by Derek Saul
Forbes
Inflation may be more palatable than years past heading into this Memorial Day Weekend, but some of the most essential items for the unofficial kickoff of summer 2024 continue to burn a hole in Americans’ wallets.
Key Facts
– Inflation is sure to be a topic of discussion at Memorial Day barbecues nationwide later this month, with inflation now running at a hard-to-stomach 6% annualized rate over the last three years after coming in at 3.4% in April.
– Though inflation is far better than April 2023’s 4.9% and April 2022’s 8.3%, it’s far above the historical average of about 2%.
Four Ways Inflation Will Impact Your Summer Travel and Spending
by Madeline Duley
Yahoo! Finance
How Inflation Will Impact Your Summer Travel
With inflation continuing to rear its ugly head, take a look at its impact on Americans’ summer vacation budgets and the strategies you can employ to save money this summer.
Latest Inflation Figures Are Good News – Even if They Give a Lot of People Heartburn
by Christopher Decker
The Conversation
The U.S. economy is slowing, but not crashing. In the dismal science, this is what counts as good news.
That’s the message I took away from the latest inflation data, released May 15, 2024, which showed U.S. consumer prices rising 3.4% in the 12 months to April 2024. This is down slightly from the 3.5% year-over-year increase reported in March 2024.
In other words, while prices are rising, they’re not going up as sharply as they once were. That’s good news for shoppers; the U.S. economy is far from the 9.1% annual inflation seen in June 2022.
Barkin Says Fed Needs ‘Little Bit More Time’ to Lower Inflation
by Steve Matthews and Amara Omeokwe
BNN Bloomberg
(Bloomberg) — Federal Reserve Bank of Richmond President Thomas Barkin said the US central bank needs to keep borrowing costs elevated for longer to lower inflation to its 2% target, citing higher prices in the services sector.
Barkin in a CNBC interview said US demand will need to slow a bit to get inflation to the Fed’s goal, noting goods inflation has come down significantly as supply chains have healed.
“To get to 2% sustainably in the right kind of way, I just think it’s going to take a little bit more time,” he said Thursday. “I still think there’s just a lot of movement on the services side and it’s going to take a little bit of time. I do believe we are on the right path here.”
Import Prices Unexpectedly Surge Higher, Raising Inflation Alarms
by John Carney
Breitbart.com
In a trend that underscores the intransigence of high inflation in the U.S., the cost of imported goods rose in April for the fourth month in a row, marking the fastest pace of increasing import prices in two years.
The Department of Labor’s import-price index surged 0.9 percent last month, government data showed Thursday. This was three times higher than what was expected.
The broad-based increase was not limited to energy, as import prices excluding fuel also climbed by 0.7 percent.
Import prices for nonfuel industrial supplies and materials jumped 3.0 percent in April, marking the largest monthly increase since March 2022. April’s rise follows a 1.1 percent advance in March, driven primarily by higher prices for agricultural products.
Don’t Give Biden a Pass on Inflation. Don’t Give Trump a Pass On Covid.
Will the real president of the United States during the years 2020 through 2022 please stand up?
by Eric Boehm
Reason.com
President Donald Trump oversaw the implementation of COVID-19 lockdowns. President Joe Biden presided over the worst period of inflation in more than four decades. Those are the facts.
But they are both highly inconvenient facts for the two deeply unpopular old men running for president this year. Both would likely prefer the American public to believe that the office of the presidency was vacant from the start of the pandemic through the summer of 2022 when inflation peaked at an astonishing annualized rate of 9.1 percent.
Biden is now pushing that retconning of reality to new levels. On Tuesday, in an interview with Yahoo Finance, Biden claimed that inflation was “at 9 percent when I came in, and it’s now down around 3 percent.” As The Washington Post notes, this is at least the third time in recent weeks that Biden has blatantly fibbed about the rate of inflation when he took office.
April CPI: Worst Good News Ever
by Mike Maharrey
GoldSeek
The monthly rise in prices based on the Consumer Price Index (CPI) came in slightly lower than projected, sending a wave of euphoria across the financial landscape.
The consensus is cooling inflation puts Federal Reserve interest rate cuts back on the table.
The Dow Jones, S&P 500, and the NASDAQ all hit record highs after the data came out on Wednesday. A CNN headline called the CPI report “encouraging” and an analyst from CIBC Private Wealth US told CNN the data “supports a Fed rate cut in the fall.” Yahoo Finance called it a “soft reading on consumer prices.”
It was great news, except it wasn’t.