by Alexander William Salter
The American Institute for Economic Research
The Federal Reserve is trying to engineer a gradual disinflation. It is getting outright deflation. The Bureau of Labor Statistics reported that the Consumer Price Index (CPI) decreased 0.1 percent in June. Consumer prices have grown 3.0 percent over the last year, which is the lowest 12-month rate since March 2021.
Core CPI, which excludes volatile food and energy prices, increased 0.1 percent. Year-over-year core inflation was 3.3 percent, the lowest since April 2021.
[…] Headline price decreases, driven by monetary tightening, are not necessary to get us back to the Fed’s target 2 percent growth path, but they do facilitate a quicker return. We may have reached a definitive point in policymakers’ (self-imposed) struggle against excessive dollar depreciation.
On the heels of the failed assassination attempt on former President Donald Trump, what is happening with gold and the US dollar is absolutely stunning.
Today’s inflation report showing ‘only’ 3% inflation, the Federal Reserve is all but guaranteed to start slashing interest rates.
Consumers got the first break from inflation since the height of the pandemic in 2020.
Inflation fell further in June as lower gasoline prices combined with other easing price pressures to bring relief for consumers’ wallets.
Core Services CPI produced 2nd outlier. In the past, after two outliers in this very volatile data, the next move was a U-turn.
(Bloomberg) — Treasury yields tumbled after benign inflation data renewed confidence that the Federal Reserve will cut interest rates at least twice this year.
These days it’s more like who wants to be a multimillionaire, am I right?
Republicans are far more trusted than Democrats to handle America’s inflation problem, polling from Rasmussen Reports indicates.
(Reuters) – Gen Z adults in the U.S. face increasing financial challenges because of inflation and rising living costs, with 46% relying on financial assistance from their parents and families, according to a report by Bank of America published on Wednesday.