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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.

Continue Reading at Reason.com…

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.

Continue Reading at Finimize.com…

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%.

Continue Reading at Forbes.com…

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

Prices at America’s biggest fast-food chains have soared above the rate of inflation in the last five years as firms come under fire for ‘greedflation.’

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.

Continue Reading at MSN.com…

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.

Continue Reading at GoldSeek.com…

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.

Continue Reading at SchiffSovereign.com…

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.

Continue Reading at GoldSeek.com…

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.

Continue Reading at KingWorldNews.com…

Fed Minutes: Most Officials Favored a Rate Cut in September

by AP
Breitbart.com

WASHINGTON (AP) — Most Federal Reserve officials agreed last month that they would likely cut their benchmark interest rate at their next meeting in September as long as inflation continued to cool.

The minutes of the Fed’s July 30-31 meeting, released Wednesday, said the “vast majority” of policymakers “observed that, if the data continued to come in about as expected, it would likely be appropriate to ease policy at the next meeting.”

In July, the policymakers kept their benchmark rate at 5.3 percent, a near-quarter-century high, where it’s stood for more than a year.

Wall Street traders had already considered it a certainty that the Fed will announce its first interest rate cut in four years when it meets in mid-September, according to futures prices. A lower Fed benchmark rate would lead eventually to lower rates for auto loans, mortgages and other forms of consumer borrowing and could also boost stock prices.

Continue Reading at Breitbart.com…

AIER Explainer Series Demystifies Public Debt

by Ryan M. Yonk and Thomas Savidge
The American Institute for Economic Research

AIER just launched its new Explainer paper series, helping the everyman make sense of complicated economic topics. The first Explainer, Understanding Public Debt by AIER Research Fellow Thomas Savidge and Senior Research Faculty Ryan Yonk helps readers understand why there are unsustainable levels of government debt at the federal, state, and local levels and how to fix the problem.

The Explainer finds:

– Government debt is a burden on future generations. Debt-financed spending provides government spending today but pushes tax increases on future taxpayers.

Continue Reading at AIER.org…