Inflation Is Alive and Well Leaving Fed No Room on Interest Rates – IOTW Report

Inflation Is Alive and Well Leaving Fed No Room on Interest Rates

Friday, 12 January 2024, 20:00 Dr. Tar Uncategorized 12

WSJ

Prices ticked up in December, a reminder of the pressures still facing consumers after a year when inflation fell by nearly half and paychecks grew, delivering real wage gains in 2023 for the first time in three years.

Inflation’s cool down from historic highs keeps the Federal Reserve on track to hold rates steady later this month and contemplate cutting them later this year. But Americans aren’t in the clear yet. The consumer-price index increased 3.4% from a year earlier in December, the Labor Department said Thursday. The acceleration from November’s 3.1% advance shows inflation isn’t fully beaten. More

Fed Rate cuts not happening anytime soon. Here

12 Comments on Inflation Is Alive and Well Leaving Fed No Room on Interest Rates

  1. ITSAN ELECTION YEAR AND THEY’RE GOING TO DO THEIR BEST TO PROP THIS FAILING ECONOMY WITH PURE BULLSHIT RHETORIC ABOUT “BEST RECOVERY EVER”, “LOOKING AT INTEREST RATE CUTS”, “NUMBERS LOOKING GOOD”, ETC

    INTERRUPTED BY THE OCCASIONAL WAR AND TRUMP HARASSMENT OF COURSE

    WHEN TRUMP WINS, THE PLUG WILL BE PULLED AND THEYLLGO FULL SCORCHED EARTH

    PROVE ME WRONG PLS

    11

  3. ELECT A CLOWN
    EXPECT A CIRCUS

    But these clowns have automatic weapons, mortars, and RPGs, and their circus tent is full of armored personnel carriers, tanks, and helicopter gunships.

    5

  4. See the 1970s for reference. Inflation is a two-headed monster and this FED doesn’t have the balls to do what’s right, and didn’t have the balls to raise rates faster than inflation to begin with. Of course it’s not done and it probably won’t be done for another 8 years if we’re lucky.

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  5. I just got word yesterday my mortgage is going up $400/month (about 33%), mostly because of increases to homeowners insurance. Living in a hurricane prone state in the Age of Biden is almost a disaster in itself. And don’t get me started on car insurance, which has doubled since Biden took power. So much for being able to retire this year…

    9

  6. BS article, just a little less screwed.
    Raising interest rates doesn’t slow inflation, it adds to it, with every transaction.
    Banks win.
    All the people who can least afford it, get hurt the worst.
    Poverty increases.

    6

  8. Cmn¢¢guy, raising rates lowers inflation by damaging the economy. It slows the velocity of money and puts people out of work. Put just the right amount of people out of work and there’s not enough outrage and the FED achieves its mythical soft landing.

    If they were serious about cutting inflation and keeping a strong(er-ish) economy, they’d pull dollars out of circulation by raising bank reserve requirements (from the current 0%) instead of trying to inflict direct damage to the economy. Buuuuuuut since we’re slaves to the debt based economy, in order to keep the charade going more and more dollars need to be pumped into the system at an exponential rate (hence our hockey stick debt burden).

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