by Brian Maher
Daily Reckoning

Touch off the rockets! Light the sparklers! Raise a joyous toast!

That is because May’s inflation data came issuing this morning. And it disappointed expectations — or rather exceeded expectations.

A Dow Jones survey of economists had divined a 3.4% inflation rate. Yet the United States Department of Labor reported a mere 3.3% inflation rate.

We can only assume you are as gleeful as us. Media outlets are. They appear to believe it represents a triumph.

Does it? We are far from convinced that it truly represents a triumph. CNBC:

Continue Reading at DailyReckoning.com…

from Arcadia Economics

by William J. Luther
The American Institute for Economic Research

As anticipated, the Federal Open Market Committee (FOMC) voted to hold its federal funds rate target in the 5.25 to 5.5 percent range on Tuesday. FOMC members also revised their forward guidance for the future path of interest rates. Back in March, the median FOMC member projected the midpoint of the federal funds rate target range would fall to 4.6 percent this year, equivalent to three 25-basis-point cuts. Now, the median FOMC member projects it will fall to just 5.1 percent, equivalent to just one 25-basis-point cut.

The FOMC’s plan to hold rates higher for longer is not limited to 2024. The median FOMC member now projects the federal funds rate will be 4.1 percent in 2025, compared with the earlier projection of 3.9 percent. The median FOMC member also revised up the longer run federal funds rate projection, from 2.6 percent to 2.8 percent.

Continue Reading at AIER.org…

from Bloomberg Television

by Amy Furr
Breitbart.com

Stubbornly high inflation is making it more difficult to raise a child in President Joe Biden’s (D) America, per LendingTree.

LendingTree Chief Credit Analyst Matt Schulz told Fox Business that prices for everything have continued to rise, adding, “There’s so much that goes into child care, including rent, payroll, insurance and much more. When all those costs shoot up, the overall cost of child care does, too,” the outlet reported Monday.

The article continued:

The cost of child care surged nearly 20% between 2016 and 2021, the latest year for which complete data is available, according to LendingTree. Annual expenses, excluding tax exemptions or credits, hit $21,681 in 2021, versus $18,167 in 2016, the data shows. That means the typical family is spending about $237,482 over the course of 18 years to raise a child — and that is excluding the cost of college.

The news comes as “expectations for inflation over the next five years have surged back to their highest levels of this economic cycle,” according to a Breitbart News article published on Monday.

Continue Reading at Breitbart.com…

from CNBC Television

by Simon Moore
Forbes

May’s Consumer Price Index release is expected to show cooling headline inflation, though core inflation may remain sufficiently high that the Federal Reserve is unlikely to cut interest rates soon. Ultimately, the Fed is not expected to cut interest rates in June and instead wait for more supportive data before potentially cutting interest rates later in the year.

May CPI Release Timing

May CPI data will be reported at 8:30 a.m. ET on Wednesday, June 12. Previous monthly figures for 2024 have seen 0.3% to 0.4% increases for both monthly headline and core inflation. Core inflation excludes food and energy price changes.

Continue Reading at Forbes.com…

from Bloomberg Television

from Zero Hedge

How is inflation impacting the average consumer, and what does it mean for the wealth gap? David Lin, Host of The David Lin Report (@TheDavidLinReport) , joins Anthony Scaramucci on ‘Speak Up’ to discuss the significant impact of inflation on everyday consumers, the widening divide in wealth and his own investment strategies to help build and protect your portfolio. In this episode of Speak Up, David Lin provides his overview of the current state of the economy and its impact on investors and consumers. David and Anthony dive into the latest trends shaping markets, touch on the role of fiscal policies have on wealth distribution, and the critical steps you need to further grow your wealth and stay ahead during volatile times.

Continue Reading at ZeroHedge.com…

from Yahoo Finance

by Stewart Thomson
GoldSeek

1. Most gold bugs agree that owning gold feels fantastic… on days when the price is up. Recent key reports and events have brought increased volatility to the market, and this has surprised a lot of investors.

2. The Chinese PBOC failed to buy any gold in May. While they typically only buy 15-20 tons each month, the failure to buy shocked futures market traders and they sold in a panic. Savvy Indian citizens likely have bought all the gold the PBOC failed to buy since then, but their action doesn’t get the headline news that the PBOC gets.

3. The PBOC fiasco was followed a few hours later with the US jobs report. While many gold bugs view this report as questionable at best (and completely fake at worst), the fact remains that it shocked investors and they panicked as gold fell violently, to a price they didn’t expect…

Continue Reading at GoldSeek.com…

from Daily Blast LIVE

by Paul Davidson
USA Today

Inflation finally pushed Mark Hawkes to a breaking point.

So a few months ago, he canceled his gym membership.

“I can do workouts at home,” especially isometric exercises, says Hawkes, who is 62 and lives in Madison, South Dakota.

He also plans to downgrade his family’s cable TV service significantly, and may even cut the cord, relying on over-the-air TV and streaming services.

At the same time, he’s spending $2,500 to remodel his bathroom, a project that wasn’t exactly a must-do.

Continue Reading at USAToday.com…

from Lark Davis

by John Carney
Breitbart.com

Biden’s Struggle with Inflation and Public Opinion

Why is the public so unhappy with President Joe Biden’s economic leadership?

Maybe because many Americans quite reasonably sense that Biden and his allies are not really all that interested in addressing the most pressing economic problem faced by Americans: inflation.

Every survey shows the public is deeply dissatisfied with Biden’s economic leadership. The most recent Gallup poll, for example, found that just 38 percent of Americans express a great deal or a fair amount of confidence that the president will do or recommend the right thing for the economy.

The most recent YouGov/Economist poll found that just 38 percent of the public say they approve of the job Biden has done on the economy, with just 18 percent strongly approving. A 52 percent majority say they disapprove of Biden’s handling of the economy, including 39 percent who strongly disapprove.

Continue Reading at Breitbart.com…

from Yahoo Finance

by Frank Shostak
Mises.org

In the late 1960s Edmund Phelps and Milton Friedman challenged the popular view that there can be a sustainable trade-off between inflation and unemployment. In fact, over time, according to PF, loose central bank policies set the platform for lower economic growth and a higher rate of inflation, or stagflation.

PF’s Explanation of Stagflation

Starting from a situation of equality between the current and the expected rate of inflation, the central bank decides to boost the rate of economic growth by raising the growth rate of money supply. As a result, a greater supply of money enters the economy and each individual now has more money at his disposal.

Because of this increase, every individual believes he has become wealthier. This raises the demand for goods and services, which in turn sets in motion an increase in the production of goods and services.

Continue Reading at Mises.org…

from Schwab Network

from King World News

Here is a look at gold, silver, the US dollar, euro inflation and oil.

June 10 (King World News) – Peter Boockvar: In response to the parliamentary election results in the EU, the French CAC index is getting hit the hardest, down about 2%, though there is weakness across the board, as Macron in response is calling for an early parliamentary election in France (first round June 30, 2nd round July 7) where the results could influence his ability to get things done. The next presidential election in France is not until 2027.

As for the overall election results, there was a reason why some in the UK were happy to leave the EU and that was to avoid the bureaucratic rule making of the EU parliament. Sovereign bond yields are higher by 5-10 bps and the euro is falling to the lowest level since early May vs the US dollar.

Continue Reading at KingWorldNews.com…

from Forbes Breaking News