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The strength of the housing market suggests that a lack of housing supply, high levels of immigration, and increased demand from remote work may mean interest rates need to go higher to reduce inflation.
The post Fed President Kashkari Warns Rates Might Not Be High Enough appeared first on Breitbart.
Somebody forgot to tell corporate America that the stance of monetary policy is restrictive.
The post Breitbart Business Digest: Corporate Profits Say No to Rate Cuts appeared first on Breitbart.
The Federal Reserve admitted yesterday that progress on inflation has stalled and that it will take longer for the Fed to achieve the confidence it needs to cut interest rates.
The post Breitbart Business Digest: The Fed Finally Realized Progress on Inflation Has Stalled appeared first on Breitbart.
President Joe Biden's mass migration is boosting inflation, chiefly by raising housing prices, according to the Economist, a U.K.-based pro-globalism magazine.
The post Globalist Magazine Admits Joe Biden’s Migration Spikes Inflation appeared first on Breitbart.
As the evidence keeps pouring in that the U.S. is still mired in an inflationary economy, the possibility that the Federal Reserve will be forced to increase interest rates can no longer be ignored.
The post Breitbart Business Digest: It’s Time for the Fed to Start Talking About Hikes appeared first on Breitbart.
It is unlikely that the Fed will cut rates at all this year; and, if inflation stays hot, it may find that it will need to begin a new cycle of rate hikes sometime next year.
The post Breitbart Business Digest: There Are No Fed Cuts Ahead This Year appeared first on Breitbart.
The pace of economic growth in the first three months of the year was far more sluggish than anyone expected—and inflation was much higher.
The post Breitbart Business Digest: Inflation Is Too Hot for the Fed to Cut Despite Sluggish Growth appeared first on Breitbart.
On Wednesday’s broadcast of CNBC’s “Squawk Box,” Professor of the Practice of Economic Policy at Harvard University and the Harvard Kennedy School Jason Furman, who served as Chairman of the Council of Economic Advisers under President Barack Obama and on the
The post Fmr. Obama Adviser: The Goal of Biden Loan Plan Will Increase Interest Rates, Inflation, Mortgage Rates appeared first on Breitbart.
As is so often the case with Bidenomics, even good news is bad news because of the upward inflationary pressure.
The post Breitbart Business Digest: Good News Is Bad News in Biden’s Economy appeared first on Breitbart.
Jerome Powell spoke today from our nation's capital and indicated what we all know to be true: The Fed has no business cutting rates at this time.
The post Breitbart Business Digest: Powell Speaks and States the Obvious—No Rate Cuts Are Coming appeared first on Breitbart.
Biden talks up the economy’s strong growth but doesn’t address the fact that the inflation rate he’s given us surpasses the GDP growth rate. He also doesn’t mention that much of this growth was funded directly by government stimulus and other financial aid given to the public.
The White House claims the economy is roaring, and mainstream media suggests only Republicans doubt it. However, consumer sentiment is declining, albeit with a slight recent uptick, which both the White House and mainstream media quickly seized upon as a positive trend. Inflation also rose this month, but the White House contends it’s down compared to 2022 levels. It appears the White House chooses to cite macro or micro data depending on what makes them look better.
The average gas price increased by 7% this month compared to last month. However, it remains lower than the $4.90 it hit in 2022. So, I suppose the White House can chalk up another win.
The reality is, both the average American and business owner perceive the economy as dismal and lack confidence in the future. Despite high inflation, the specter of recession still looms large, suggesting stagflation may become a reality in the near future. We could easily find ourselves grappling with growing unemployment alongside escalating prices. Technically, we’ve been in a recession for some time now, but Janet Yellen’s assertion that a recession isn’t defined by two consecutive quarters of negative growth was surprising to me and most university economics professors, as it contradicts the textbook definition of a recession.
Regarding stagflation, it’s defined by rising prices and growing unemployment. In the strictest sense, the White House is correct that we haven’t reached that point yet. More jobs are being created each month. However, if you’re looking for a job, the difficulty in finding one is obvious. This is largely due to the fact that 70% of the new jobs being created are part-time, while about 20% are government jobs. Depending on one’s definition of “jobs,” an argument could be made that significant numbers of new full-time private sector jobs are not being created.
The truth is, the economy has been on shaky ground throughout Biden’s entire administration. The only thing preventing a complete collapse is government stimulus and government job expansion, both of which add to the deficit and debt, merely postponing the inevitable. And that inevitable end is fast approaching.
Several US municipalities have implemented excessively high minimum wages, reaching up to $20 an hour. As a result, retailers, fast food chains, and ride-hailing apps like Lyft and Uber are exiting these markets. Grocery stores are transitioning to self-checkout systems, while fast-food establishments are introducing order kiosks. Moreover, many CVS and Walgreens drugstores have significantly reduced their floor staff, in some instances to just one employee.
Under Bidenomics, we’ve witnessed a 46% increase in gas prices, with mortgage rates inching closer to 7%. Meanwhile, the demand for new mortgages is dwindling.
Real wages, adjusted for inflation, have dropped by an average of $371. The White House’s deception on this matter lies in presenting a chart of inflation that peaked in June 2022 and has since been declining, while wages have been on the rise. At first glance, it may seem that the worst of inflation is behind us and wages now surpass inflation. However, it’s crucial to remember that prices have not decreased.
The rate at which wages are increasing, at 5%, now exceeds the rate of price increases, at 3.2%. However, over the past four years, we’ve seen cumulative inflation of nearly 20%. So, whereas you once earned a dollar, you now earn $1.05, while goods that previously cost $1.00 now cost $1.20. As a result, your real wages, adjusted for inflation, have decreased.
In short, the money you earn buys you less stuff.
Due to a decline in inflation-adjusted income, US savings rates have dropped to 3.6% from the pre-pandemic level of 6%. Credit card delinquencies and car loan defaults have reached record highs. Many Americans report borrowing money each month just to cover their cost of living.
Bidenomics is a disaster, and the White House is still considering cutting interest rates, which would cause inflation to skyrocket.
The post Credit Card Defaults, Inflation, Part-Time Jobs: The Economy Is a Disaster appeared first on The Gateway Pundit.
Delinquency rates among American credit card holders are at an all-time high, according to a Federal Reserve Bank of Philadelphia report.
The post Nolte: Bidenomics Drives Credit Card Delinquencies to Record High appeared first on Breitbart.
The victory over inflation that the Biden administration and many on Wall Street were eager to celebrate last year now seems to have been, well, transitory.
The post Breitbart Business Digest: March Inflation Report Kills Chance of a June Rate Cut appeared first on Breitbart.
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