ABC News
Inflation slowed in April after seven months of relentless gains, a tentative sign that price increases may be peaking while still imposing a financial strain on American households.
Consumer prices jumped 8.3% last month from 12 months earlier, the Labor Department said Wednesday. That was below the 8.5% year-over-year surge in March, which was the highest since 1981. On a month-to-month basis, prices rose 0.3% from March to April, the smallest increase in eight months. More
More happy talk Here
Closer to the truth
There are three reasons why the odds on a recession are high at present.
First, inflation is becoming entrenched judging from the above analysis. Inflation is high and broad based whilst the labour market is tight. The rise in sticky prices is a particular concern as by their nature they move more slowly and take longer to come down.
This would allow more time for second round effects to develop where wages follow prices higher leading to a further round of price hikes.
As a result the task for central banks of bringing price rises back to target is made harder: monetary policy needs to tighten by more to bring demand into line with supply. In this environment a recession may actually be necessary to bring inflation down.
Second, monetary policy is a blunt tool. Milton Friedman’s theories have informed the monetary policies credited with taming inflation for most of the past four decades.
He said, however, that monetary policy acts with long and variable lags. Confidence effects also play a role. Fears of recession can become self full filling for example, resulting in cut backs in spending.
Central bank models give policymakers an indication of how long those lags are, but they are not precise. Judging how tight policy needs to be is difficult and the temptation is to keep raising rates until something breaks. This was very much the pattern in the 1980s and 1990s.
Third, that policy judgement is made more complex today by what is happening elsewhere.
– Monetary policy is tightening or set to tighten around the world in response to inflation, not just in the US. Global trade and external demand will be weaker as a result.
US inflation going back to the last century. Here
8.3% inflation… yeah since lasr week!!
Even IF you got pay raises that were proportional (Which you NEVER do) the Tax Bracket creep means that you get to KEEP LESS & qualify for less deductions.
That’s How they Fuck You!
Too bad leftist voters do know that…
Hey folks, think of all the money you can save on your trash bill because you’re not buying nothing.
Gee, just think of whut you’ll save by not buying toilet paper when there’s no food!
Can’t think of one purchase of anything I regularly consume that hasn’t jumped a minimum of 25% with mamy items more in the 50 to 100%+.
8.3% is a myth. Government bookkeeping.
Biden is so far gone he has no clue. His puppet masters are gleeful because their plan to crush the middle class is working.
It all depends on the point of reference. If the time line starts when Jackass Joe was installed, a lot of things have gone up by 100%.
It’s bad and going to get worse. It took Reagan 2 years to undo the damage Carter did. The Biden years are going to make the Carter yeas seem like the Trump years.
Thanks for that ABC…no more worries, nothing but Blue Skies ahead.
Have they called it “Funflation” yet? If not, they will. Remember “Funemployment” during the Barky years?
It’s always better to bleed to death, slowly.
you can’t keep printing dollar bills like they’re pages of a newpaper and not have inflation; after all, what is inflation but a dollar bill whose purchasing power has sunk to a penny.
…THIS is probably the closest thing to a happy face that anyone can put on it…
https://iotwreport.com/the-joe-biden-diet/
Even if this dark cloud has a silver lining, they’ll find a way to tax it.
Happy days are here again!
https://www.youtube.com/watch?v=tRS-BMwgTOo
$5+ a gallon of gas today. Filled up the tank. Over $90
If you agree to commerce in Federal Reserve “notes”, who are we to disagree?
Complete scum – corrupt motherfuckers selling out our country.
So, who’s going to talk to President Trump about pushing 0% interest rates during his term because the Europeans were doing it? Remember that?
I nominate fnuck.
I commented here at the time about it. It was one of his big mistakes and I’m still waiting to hear him discuss it, the FED and the future of the U.S. Dollar. The day of final reckoning is coming – and fear of addressing this problem head-on won’t be an option this time.