Inflation remains hotter than expected, muddying path for Fed rate cuts

I figured another generic answer was coming.
Once an inflationary period starts, you know well that the federal government can do almost nothing. The fed is the only group with any real ability, and they can only raise rates to further mitigate it. So if you want Trump elected so that rates can further be raised beyond what Biden’s appointee has done because 3.5 percent inflation isn’t tolerable, try that as the election pitch, and see how it goes.

 

Inflation is 3.4%. I’d say that’s pretty manageable. What is there for the White House to “figure out”?

Interestingly, a number of states are already seeing inflation basically at the fed target. Know which state is actually contributing most to inflation right now? Florida at 4%!

CPI inflation is highest in these U.S. states and lowest in these

With housing prices, insurance rates, and some of the other rising prices in FL, it makes one wonder why ya’ll aren’t blaming Desantis for inflation (not actually wondering, it’s obvious).

 

We're drilling oil at all time record rates. Problem is, for automobile gas, much ifv the oil is too crude. So drilling more when you can't use it in cars, and are already drilling at record rates won't solve jack.

Trump is also proposing new tariffs. Think companies won't pawn these costs onto consumers? Of course they will. Tariffs are inflationary.

We're also experiencing labor shortages. And remember, Trump cut legal immigration, and we're down over 1 million legal immigrant workers. We're still suffering from this. If elected again, Trump promised to deport millions. Legal or not, removing millions from an already tight labor pool would too be inflationary.

I trust Biden over Trump to handle inflation. And I certainly trust Biden's advisors over v Trump's "best people," many of whom are v either in jail or vehemently campaigning against Trump.

 

Hugely underrated FU IMO

 

So are you trying to say the Trump tax cuts fueled inflation, that’s what the thread is about or were you just throwing something in the air hopping it would land on something?
Whatever the Trump tax cuts added to the National Debt pales in comparison to the increase in the National Debt over the last 3 years. Isn’t it going up like 1 trillion dollars every hundred days right now, but I’m sure that’s Trump’s fault too.

 

Gas price hikes now are more due to the Middle East mess than summer demand.

 

Many economists felt the spike in inflation was increased by 3% overall from Government spending.
Now if you’re mincing words and only including direct payments to citizens under the term “stimulus” you may be right. Most are referring to all the excess government spending including loose monetary policy not just stimulus checks that people got.

 

do you think tax cuts stimulate the economy?

 

I’ve seen the idea suggested that the tight labor market has increased inflation, and that less immigration has made it worse. I’m assuming the tight labor market has increased wages and that’s the “reason” its lead to higher inflation. If that’s true then hasn’t increasing the minimum wage increased inflation too? I’ve been told by the left it doesn’t do that, so which is it?

 

So, the Trump fanboyz think he'd handle inf.


Trump was pitched possibly the biggest political softball in the history of the universe & managed to become a hysterical prig instead of just pretending to be a leader. If you don't know what I'm referring to, good god.

 

they are both inflationary. eliminate the min wage & increase legal immigration. gee, I wonder if either of our parties run on that.

 

They can, but what was the rate of inflation after the Trump tax cuts and before we shut down half the country and dumped 5-6 trillion into the economy?

2017 Annual inflation was 2.1%
2018 2.4%
2019 1.8%
2020 1.2% (covid).

I don’t see a direct sustained rise after the 2017 tax cuts…

 

I don't understand what pt you are trying to make. the economy does not exist in a lab. there are many forces acting on it. I was simply asking, do you think tax cuts stimulate the economy. Something can be inflationary without causing a rise in inflation. Think about it.

perhaps you recall, we'd spent the decade before those cuts desperately trying to stave off deflation.

 

My response to you perhaps was also in response to a poster up thread who suggested the Trump tax cuts have a lot to do with our current state of inflation.

 

I predicted high interest rates with a lot of pain and likely recession. I still hold that view.

 

If you keep predicting a recession, you will eventually be right.

 

With our national dept rising at unprecedented rates, time to pay the piper---

 

You have to admit the economy under Biden has been much more resilient than you expected. Most of you have been calling for an economic downturn since Trump skipped the inauguration. I have no idea where it is going but currently our economy is leading the free world.

 

Some better news. Hope it becomes a trend.

Wholesale prices rose 0.2% in March, less than expected