from Rebel Capitalist
Americans Say Their Savings Accounts Aren’t Keeping Up with Inflation. There’s a Fix.
by Daniel de Visé
USA Today
Most Americans feel their bank accounts aren’t keeping up with inflation, a new survey finds, fresh evidence that savers who seek high interest rates may not be looking hard enough.
In a survey fielded by the personal finance site WalletHub, 65% of bank customers said the money in their accounts isn’t keeping pace with inflation. The findings come from a nationally representative survey of more than 200 consumers.
If a consumer’s bank account is earning less than the inflation rate, banking experts say, that may be the customer’s own fault.
“People do not do enough comparison shopping when it comes to where they’re going to put their money, their savings,” said Odysseas Papadimitriou, CEO of WalletHub. “They usually rely on the easiest solution.”
How Much Do Commodities Impact Inflation Indices?
by Dr. Mark Shore
CME Group
Inflation rose across much of the world as the COVID-19 pandemic disrupted supply chains and changed consumption patterns during a period of social sequestration. In the United States, inflation topped 9% at its peak, but has since come down sharply although it remains stubbornly above the Federal Reserve’s (Fed) 2%target. In the U.S., the rate of inflation is primarily measured by two indicators: The Consumer Price Index (CPI), calculated by the Bureau of Labor Statistics (BLS), and Personal Consumption Expenditures (PCE), calculated by the Bureau of Economic Analysis (BEA). These indicators contain a variety of prices across several sectors such as food, energy, durable goods, services, transportation, and rent.
What Trump’s Tariffs Plans Mean for Inflation: Chart of the Day
by Madison Mills
Yahoo! Finance
President Donald Trump’s initially proposed tariff strategy was widely viewed as inflationary by market participants. However, the new president has since moderated his stance, announcing plans for just a 10% tariff on China by February 1.
In today’s Chart of the Day, host Madison Mills examines how inflation and markets could respond if these revised tariff plans are implemented.
To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
Inflation Remains Steady, but Likely Won’t Influence Interest Rates
The labour market and economy will be bigger predictors
by New Zealand Adviser
NZ Adviser
Inflation remains steady in New Zealand, according to Wednesday’s consumer price index. The results are another indicator of what’s to come as the nation continues to battle conflicting market pressures.
Wednesday’s report revealed that the CPI rose 0.5% for the quarter, or 2.2% for the 12 months ending December 2024, in line with what market participants were expecting.
Kelly Eckhold, Westpac’s chief economist NZ, told New Zealand Adviser, that the market’s reaction to the report is “basically neutral.”
“It wasn’t a surprise,” he said. “It just confirms that inflation isn’t really the biggest driver of the Reserve Bank and interest rate policy right now. What’s going to be more important are what trends in the labour market and general economy as we go through the first half of the year.”
Gold Breaks Triple Top to Soar to Three-Month High Above $2,750 On Inflation Expectations
Gold rises 2% to break triple top
from Trading View
Precious metal turned up as investors reacted to Trump’s tariff plans, which are likely to flare up inflation, leading to interest rates that may stay higher for longer. Let’s break it down.
Donald Trump Kicks Off Presidency
— Gold prices pumped nearly 2% on Tuesday and extended the swing early Wednesday to $2,750 per ounce as markets were reacting to Donald Trump’s first moves in office. The 47th President of the US signed more than 200 executive orders on his first day at the job, sending investors scrambling, gold bugs included.
Liquidity Problems Could Overwhelm Inflation’s Effects
by Kelsey Williams
GoldSeek
LIQUIDITY PROBLEMS – 1929
In 1928 and 1929, the Fed raised interest rates for the purpose of curbing rampant speculation in stocks. At that time, investors could borrow as much as 90% of the stock price for their proposed investment. The banks were just as aggressive as investors and were happy to oblige.
Raising rates did not slow stock speculation by investors or banks, however.
What it did do was cause a slowdown in economic activity. Thus, as economic activity declined, the stock market continued its rise, unabated.
Inflation Soars in Russia
by Martin Armstrong
Armstrong Economics
Russia’s CPI reached 9.5% this December as government spending has pulled the reigns away from the central bank. Inflation elevated from 8.9% YoY in November to 9.5%, slightly below expectations of 9.7%. Prices are up 1.3% on a monthly basis overall, but Russians are feeling the impact of war.
Services from 11.4% to 11.5% on the yearly while non-food goods are up from 5.7% YoY to 6.1% Prices at the grocery store have soared from 9.9% YoY to 11.1% as Russia struggles to find reasonably priced imports. Core inflation is up 1% monthly, but up 10% over the past four quarters. The central bank is lightyears away from its 4% inflation target. The spread between rates and inflation is a concerning 11.5%.
Russia’s Central Bank maintained its policy rate of 21% in December. This is not a money supply issue and government cannot curtail spending amid a rapidly escalating war effort.
Trump Has No Magic Wand That Will Lower Inflation
He’ll have a hard time keeping his promises on this front, as anyone would, because of the dynamics involved.
by Paul Anton
Star Tribune
“If everyone in town just pulls together, can we keep inflation out of our town?”
That is the question I was asked on a phone call to my office at the Federal Reserve Bank of Minneapolis one morning in 1979. I was a young economist in the bank’s research department. The caller was a representative of a special civic committee from a medium-sized city in the Ninth Federal Reserve District. The committee’s goal was to keep inflation out of their town, if possible.
The caller was so sincere that I felt he deserved more than a glib answer. So, I explained step by step. The committee would have to convince the Ford dealership not to raise its prices when the wholesale prices it paid Ford for cars rose and, eventually, to sell cars at a loss. The same held true for the local appliance store and other local merchants.
Gold SWOT: Gold Rises as Traders Look Beyond Inflation Data
by Frank E. Holmes
Kitco
Strengths
– The best performing precious metal for the week was gold, up 0.86%. Bullion traded at over $2,700 an ounce, after the consumer price index — which excludes food and energy costs — rose 0.2% following four months of gains of 0.3%. Gold climbed to the highest in a month after a surprise slowdown in U.S. inflation revived expectations for Federal Reserve rate cuts this year, reports Bloomberg. […]
– According to BMO, Mandalay Resources reported fourth quarter 2024 gold equivalent production of 25,000 ounces. On an annual basis, the company produced 97,000 ounces of gold, which approached the high end of its annual production guidance of 90,000-100,000 ounces. Mandalay has coproduct grades of 5% antimony that significantly enhances its importance to Western interest with China cutting of antinomy exports.
How Trump’s Promise to Take On Inflation Could Hit Your Wallet
by Brad Smith
Yahoo! Finance
In his inauguration speech, President Trump vowed his Cabinet will defeat inflation by using “the vast powers at their disposal.” How should Americans expect the administration’s economic policies to affect their personal finances as they work to bring down their own debt?
“At the end of the day, there’s just these personal finance pillars that are important for everybody, no matter who’s in office, no matter what inflation rates are doing, no matter what wages are doing,” Ramsey Solutions master financial coach and debt elimination expert Jade Warshaw discusses with Brad Smith.
“It’s important to be a good steward of the money that you have and your… personal purview. And that really just looks like being a person who’s always on a budget. That’s part of how you handle money.”