June, July, & August 2024 CPI & PPI not what Fed Reserve Needs for rate policy change

The June 2024 CPI isn't what the Federal Reserve is looking for to shift their policy to rate cutting.

Consumer Price Index Summary - 2024 M06 Results (bls.gov)

The biggest difference from May to June is the change in gasoline prices. There have now been back-to back months with falling gasoline prices in the CPI. The only thing that I know of that can cause a change like this is Biden releasing NE gasoline reserves to help lower gas at the pump. This also likely accounts for VAg8r1's drop in gas in Virginia from $5.09 to $3.59 over the last 2 months, see post #44 in Personal Inflation Alert.

The Fed isn't so blind as to not recognize gasoline sticks out like a sore thumb and especially so for the time of the year. If past practice in Fed decisions holds, the Fed won't lower rates for what is a small temporary reduction in inflation.

Of course, all of the lamestream media will tell you this report is great and lower interest rates are just around the corner. The Biden Administration is doing a great job.

June CPI report: Inflation cools again in another positive sign for U.S. economy (axios.com)

Axios is right on top touting the report as if it is a good thing. (chuckle) Not one word about gasoline being down -3.6 May and -3.8 in June. Thank you, Dictator Biden, for gasoline price reductions that never filtered down to where I live on the Gulf Coast. (shaking head)

The Consumer Price Index fell 0.1% in June and the measure that strips out energy and food costs rose by the same amount, the Labor Department said on Thursday.

Why it matters: The new data shows price hikes slowed sharply last month — offering relief to American consumers and bolstering the case for the Federal Reserve to cut interest rates.

By the numbers: CPI rose 3% in the 12 months through June, compared to the 3.3% in May.

• The core measure that excludes volatile energy and food prices rose 3.3% in the past year—the smallest 12-month increase since April 2021.
• In May, overall CPI was flat for the month, while core CPI rose 0.2%.

 

The Fed raised rates 7 times on our last R to get the CPI down from 2.4 to 2.0 and less which prompted 3 rate reductions once below 2.0%.

Being D or R has nothing to do with the report and how the Federal Reserve will view it. Exactly what do you think the Federal Reserve will do after this report insofar as reducing interest rates are concerned and especially so, as minus food and energy, inflation ticked up by .1%?

Jerome Powell commented yesterday that the US is through with zero percent rates.

 

You mean like releasing 1,000,000 million gallons of gasoline from the NE Gasoline Reserve to show a temporary reduction in inflation in order to buy votes in places like Virginia where gas prices fell over the last 2 months from $5.09 to $3.59?

The Office of the Dictator deserves to be bashed in Biden's name. We all know he isn't running the country. It's being run by a team of antisemites, socialists, and communists. The press secretary refers to it as "the team." Funny how she avoids naming the team.

 

Go back and reread post 1, the largely bolded part from Axios which is a comment by the Labor Department.

 

Leave satisfied to know you lack discernment as to what is and is not a good report insofar as what the Fed has said that it wants to see before rate reductions can be considered.

 

Come now, a person as astute as you knows better than this. If not, I'm glad you are not a Federal Reserve Bank Governor.

 

LOL! is the best that I can do with this at this time. (shaking head)

 

I understand that you can't see this report is not positive even though your leftist lamestream media will tell you that it is great, inflation headed in the right direction, interest rate cuts soon. (shaking head)