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What, and Who, Caused the Inflation the Fed is Currently Fighting?

by Richard Mills
GoldSeek

The weaker labor market and rising unemployment rate, which hit 4.1% in June, is fodder for the US Federal Reserve to slash interest rates, possibly once in September and a second time in December.

In remarks to Congress, Fed Chair Jerome Powell said the US is “no longer an overheated economy” with a job market that has “cooled considerably” and is back where it was before the pandemic, suggesting the potential for rate cuts is becoming stronger. (Reuters, July 9, 2024)

Powell told senators that inflation has been improving in recent months. The chart below shows the annual inflation rate slowed to 3.0% in June, compared to 3.3% in May and 3.4% in April.

Continue Reading at GoldSeek.com…

Shoplifters Point to Inflation and Economy as Main Reasons for Stealing From Retailers

by Khristopher J. Brooks
CBS News

Inflation has led to price surges at grocery stores, car dealerships and even dine-in restaurants nationwide. A new study finds it’s also the main motive behind another recent surge: shoplifting.

More than 20% of Americans have admitted to stealing items from stores within the past year or so, according to a new survey from personal finance website LendingTree, which polled 2,000 U.S. consumers from ages 18 to 78.

Of those who admitted to recent retail theft, roughly 90% of them said they did so because of inflation and the current economy. Specific reasons included, prices becoming otherwise unaffordable (34%), helping make ends meet (30%) and helping save a few bucks (27%).

Continue Reading at CSBNews.com…

Fed’s Preferred Inflation Gauge Cools, Adding to Likelihood of a September Rate Cut

The Federal Reserve’s favored inflation measure remained low last month, bolstering evidence that price pressures are steadily cooling and setting the stage for the Fed to begin cutting interest rates in September

by Christopher Rugaber
ABC News

WASHINGTON — The Federal Reserve’s favored inflation measure remained low last month, bolstering evidence that price pressures are steadily cooling and setting the stage for the Fed to begin cutting interest rates in September.

Prices rose just 0.1% from May to June, the Commerce Department said Friday, up from the previous month’s unchanged reading. Compared with a year earlier, inflation declined to 2.5% from 2.6%.

Excluding volatile food and energy prices, so-called core inflation rose 0.2% from May to June, up from the previous month’s 0.1%. Measured from one year earlier, core prices increased 2.6%, unchanged from June. Economists closely watch core prices, which typically provide a better read of future inflation trends.

Continue Reading at ABCNews.Go.com…

Inflation Rankings Flip: Northeast Has Largest Price Jumps, South and West Cool Off

by Paul Davidson
USA Today

The nation’s regional inflation rankings have turned upside down.

For years, inflation has been higher in the South and West because Americans flocked to those areas for their temperate climates and lower costs, driving strong consumer demand and higher prices.

That trend was amplified by the pandemic. As remote work spread, many people streamed out of densely populated Northeastern and Midwestern cities like New York and Chicago for less costly areas with lots of open spaces, like Tennessee’s Nashville and Idaho’s Boise.

But the pecking order has reshuffled.

Continue Reading at USAToday.com…

Consumers’ Mixed Economic Sentiments Hurt by Inflation, Lifted by Labor

from PYMNTS

As consumers look at their economic prospects, they are torn between factors pulling them in different directions, feeling relatively confident about the job market but remaining deeply concerned about rising prices.

Confidence Ekes Upward

The Conference Board Consumer Confidence Index rose modestly in July, signaling mixed sentiments among U.S. consumers. The index increased to 100.3 from a revised 97.8 in June. This uptick, however, masks underlying concerns. The Present Situation Index, which evaluates current business and labor market conditions, dropped to 133.6 from 135.3, indicating that consumers perceive the present economic situation as slightly deteriorating.

Continue Reading at Pymnts.com…

A Former Fed Official Finally Tells the Truth About Inflation…

by James Hickman
Schiff Sovereign

My sister used to be a reporter for Fox News based in south Florida and would regularly be assigned to cover NASA press conferences.

And she’s often told me about how reporters were terrified to ask any real questions. They’re not astrophysicists and don’t understand the first thing about rocket propulsion, and most of the journalists never bothered to learn even the basics of the topic.

So, the majority of the questions were very superficial; quite simply the reporters didn’t want to embarrass themselves.

This is how the media covers the Federal Reserve. Most reporters don’t have a clue about central banking, so, not wanting to look stupid, they just sit quietly and give the Fed a pass. There’s no real scrutiny.

Continue Reading at SchiffSovereign.com…

Kamala Harris Insisted “Bidenomics’ Worked While Costs Soared

by Wendell Husebo
Breitbart.com

Vice President Kamala Harris championed the administration’s so-called “Bidenomics” as costs dramatically soared for American families.

Costs increased on average across the board by about 20 percent under the Biden-Harris administration. Popeyes, Taco Bell, and Chipotle, for example, raised prices by at least 75 percent, according to the Food Institute.

At least five times Harris praised the policies that fueled the rising costs:

Harris will have a difficult time convincing voters to believe that the administration is doing a good job on the economy, the number one issue for voters.

Continue Reading at Breitbart.com…

Beware of Conflict Theories of Inflation

by Nicolás Cachanosky
The American Institute for Economic Research

In recent years, the resurgence of inflation in the United States and other advanced economies has brought a revival of conflict theories of inflation (CTIs). These theories, which are gaining momentum in academic and policy-making circles as well as the popular press, posit that inflation is fundamentally the result of distributional conflicts among various social groups. The historical roots of CTI reveal their policy implications. For instance, Elizabet Warren has spearheaded initiatives rooted on CTI ideas such as Shrinkflation Prevention-Act and the Price Gauging Act of 2024. The “greedflation” narrative, so popular in recent years by Isabella Weber, is another example of CTI-inspired rationale surrounding higher-than-normal inflation.

The rising popularity of CTIs can be seen in the public discourse on “greedflation,” where inflation is attributed to corporate greed. In academia, influential figures such as Olivier Blanchard have echoed similar sentiments.

Continue Reading at AIER.org…

Wall Street Climbs as Inflation Data Sparks Rate Cut Hopes

Stocks surged Friday with positive US inflation data boosting investor confidence in potential rate cuts

by Freschia Gonzales
Wealth Professional

Stocks soared on Friday, ending a volatile week on a high note as investors considered fresh US inflation data, according to CNBC.

The Dow Jones Industrial Average surged 654.27 points, or 1.64 percent, closing at 40,589.34. The S&P 500 increased by 1.11 percent to 5,459.10, while the Nasdaq Composite rose 1.03 percent, finishing at 17,357.88.

CFRA Research’s Sam Stovall noted that Friday’s gains resulted from oversold sentiment, a robust GDP report on Thursday, and expectations that the Federal Reserve will cut rates due to economic strength.

“Today’s benign PCE report helped talk the market off the ledge,” he said. “With this pullback, the great rotation lives on, and breadth continues to be on our side.”

Continue Reading at WealthProfessional.ca…

Harris Freshens Up Her Message On the Economy as Trump and Republicans Go After Her On Inflation

Since President Joe Biden left the White House race, Vice President Kamala Harris has begun to craft her own narrative around the economy

by Josh Boak
ABC News

WASHINGTON — All of a sudden it’s Kamala Harris ‘ economy — a major opportunity as well as a possible risk for the likely Democratic presidential nominee.

Shortly after President Joe Biden left the race a week ago, Harris began to craft her own narrative around the economy by putting an emphasis on ending child poverty, promoting labor unions, reducing the costs of health and child care and protecting “dignity” in retirement.

Not once in speeches in Wisconsin, Indiana or Texas did she mention the word “inflation” — the overwhelming economic challenge that has dogged Biden’s administration and forced him in remarks to consistently acknowledge voters’ pain as they cope with higher grocery, gasoline, housing and auto expenses.

Harris is putting a bigger priority on what she says could be ahead.

Continue Reading at ABCNews.Go.com…