from Hoover Institution
Fed’s Actions Spoke Louder Than Words in Inflation Fight, Research Shows
by Howard Schneider
Reuters.com
JACKSON HOLE, Wyoming, Aug 24 (Reuters) – The Federal Reserve’s credibility in the eyes of financial markets helped in its battle against inflation over the past two years, but it had to be earned afresh with interest rate hikes that backed up policymakers’ verbal promises to restore price stability, according to new research presented at the Kansas City Fed’s annual research conference in Jackson Hole, Wyoming.
A strong perception in financial markets that a central bank is committed to inflation control can make monetary policy more effective, prompting markets to shift financial conditions faster and lowering inflation with a less serious hit to economic growth than would otherwise be the case.
Inflation, Taxation, Then Deflation Will Destroy Prosperity. Guaranteed.
The Harris-Walz ‘plan’ for taxes and the economy are guaranteed to lead to ruin. But they make for great policies rooted in envy and resentment – the twin sources of fuel for all Communist-Marxist movements throughout history. Please take heed and move your wealth out of harms’ way.
by Dr. Chris Martenson
Chris Martenson’s Peak Prosperity
With Paul Kiker off on holiday this week, this is a solo presentation.
I hold two thoughts about the world’s financial ““markets”” at present:
More people will be harmed by the bursting of the many nested Fed-enabled financial bubbles than were ever harmed by Covid itself and/or the devastating Void and jab policies.
The markets are actually “”markets”” and are almost entirely works of fiction which are maintained for their narrative powers rather than their ability to accurately channel capital to where it is most needed and valued.
Eggs Up 147% in the Biden-Harris America
by Hannah Knudsen
Breitbart.com
While Democrats are attempting to tout their message of “joy” at their convention, Americans are suffering from the Biden-Harris inflation. Now, even the cost of eggs — a basic grocery staple — has shot up 147 percent since President Joe Biden and Vice President Kamala Harris have taken office three and a half years ago.
Data from the Producer Price Index data, not seasonally adjusted, shows that the price of eggs has shot up 147 percent from January 2021 to July 2024, covering nearly the entirety of Biden and Harris’s time in office.
[…] This is an economic reality Americans have continued to grapple with over the course of the Biden-Harris administration, despite the fact that the White House remains in complete denial. In fact, Press Secretary Karine Jean-Pierre claimed in June that grocery prices went down under Biden’s leadership. That, of course, is categorically untrue, as Americans are facing the worst food inflation in nearly half a century.
The Dumb and Dumber of Kamala’s ‘Greedflation’ Narrative
The American economy is robustly competitive. The federal government could just mess it up.
by Jason Sorens
Reason.com
Democratic presidential candidate Kamala Harris’ new call to regulate food prices and block mergers has drawn enormous flak from economists, given the poor track record of price controls. Democrats think they can make political headway with a “greedflation” narrative, blaming rising prices on business profit-seeking.
There are both disreputable and respectable versions of this narrative—dumb and dumber, if you will—but they both run into the same problem: the evidence is against them. The dumber version, the one no economists endorse, says corporations got especially greedy, which made prices go up. If this were true, we could explain surges and drops in inflation as an effect of surges and drops in corporate greed. Since greed is limitless, prices would never drop and this is clearly at odds with observable facts and history.
Fed Eyes Rate Cuts While Keeping Inflation in Check
by Finimize Newsroom
Finimize
What’s going on here?
Boston Federal Reserve President Susan Collins hinted at upcoming interest rate cuts, aiming to trim inflation without shaking up the labor market.
What does this mean?
Susan Collins is confident the US central bank can reduce inflation without causing a recession. She supports starting rate cuts next month but emphasizes the need to maintain a healthy job market. The Fed hasn’t changed its policy rate, currently in the 5.25%–5.50% range, since last July. Inflation, measured by the Fed’s preferred gauge, was at 2.5% in July – above the 2% target but much lower than the 7% peak seen two years ago. Collins advocates for a ‘gradual, methodical’ policy adjustment to avoid a rapid cooling of the labor market, which could lead to an economic decline.
What to Expect From August’s CPI Inflation Release
by Simon Moore
Forbes
The next Consumer Price Index release for August is expected to show further disinflation. That may support a cut in interest rates, with markets now debating the size of any cut rather than whether it will happen. With recent softness in jobs data and negative revisions to prior reports, the risks to unemployment may be gaining more of the Federal Open Market Committee’s attention than inflation risks.
August CPI Release Timing And Forecasts
The August CPI release is scheduled for 8:30 am E.T. on September 11. The prior release for July showed a 0.2% monthly increase with a 2.9% annual increase. That compares to the FOMC’s 2% inflation target. Nowcast forecasts from the Federal Reserve Bank of Cleveland suggest that August CPI will come in at 0.23% for August or at 0.26% for core inflation, removing food and energy price moves. That would translate to an annual inflation rate of 2.6% and core inflation running higher at 3.2%. Forecasting site Kalshi is currently estimating headline inflation at 2.5%.
Millions of Americans Are Fed Up with Fast-Food Prices
Fast food prices have shot up 33 percent since 2019, figures show
by Helena Kelly
MSN
Customers are now voting with their wallets causing traffic to chains to drop 3.5 percent in the first three months of the year compared to 2023, according to data from Revenue Management Solutions.
It means big chains like McDonald’s, Wendy’s, Popeyes, Pizza Hut and Chipotle have likely sold millions fewer burgers, pizzas and burritos.
It comes as social media users are increasingly complaining about high fast-food prices, with a McDonald’s in Connecticut recently lambasted for selling a Big Mac meal for $17.59.
Gold Hits Historic Milestones as Inflation and Dollar Weakness Drive Precious Metals Surge
by Money Metals
GoldSeek
In the latest episode of the Money Metals Midweek Memo podcast, host Mike Maharrey dived into the ongoing impacts of inflation, Federal Reserve policies, and the latest developments in the gold and silver markets.
Maharrey opened the discussion with an analogy comparing the Federal Reserve’s denial of responsibility for inflation to a guilty child refusing to admit wrongdoing. He emphasized that, despite attempts to blame external factors like “Putin” or “greedy corporations,” the Fed’s policies have undeniably contributed to rising inflation.
Kamala is Going to Drive Gold to $10,000
by James Hickman
Schiff Sovereign
Gold recently hit $2,500 marking an all time record high.
The reality is, there’s a very good case to be made that gold is still quite cheap compared to its trajectory. It’s possible that in a few years, $2,500 gold could look remarkably inexpensive.
Not to be overly dramatic, but Kamala Harris is a big reason why.
I’m not a D or R kind of guy, but it’s impossible to ignore the impact of the upcoming election on the future of the US.
At a press conference a few weeks ago, reporters asked Jerome Powell, the Chairman of the Federal Reserve, about the upcoming Presidential election and whether or not the Fed was modeling any potential policy changes depending on the outcome.
Can Greedy Politicians Really Stop Price Inflation with a “Price Gouging” Ban?
by Mike Maharrey
GoldSeek
Kamala Harris is going to fix price inflation.
As she explains it, greedy corporations are arbitrarily raising prices and causing inflation. She will stop this “price gouging” and inflation will go away.
The problem with this plan is greedy corporations don’t cause price inflation. Greedy politicians do.
But Harris isn’t interested in fixing herself, so she will scapegoat the people who produce and distribute your food and empty shelves along the way.
Of course, if you look at it the right way, it’s a brilliant plan. You won’t pay as much for groceries because there won’t be anything on the shelves to buy.
Look at What is Happening with Inflation and Fed Rate Cuts
from King World News
With so much speculation about what is going to happen in September, look at what is happening with inflation and Fed rate cuts.
Inflation Falling
August 21 (King World News) – Gerald Celente: The U.S. Consumer Price Index rose at an annual pace of 2.9 percent in July, falling from 3.0 percent in June and sliding below 3 percent for the first time since 2021, the Bureau of Labor Statistics (BLS) reported.
Analysts were expecting the rate to hold at 3.0 percent, according to the consensus in a FactSet survey.