I’m not arguing against it, better to be safe than sorry with inflation. The problem is wages tend to follow reported inflation and reported inflation lags real inflation.
Yes, businesses pass on wage increases to the consumer. The issue is compounded in that businesses typically err to the high side with the price increases to make sure they maintain their profit margins.
I continue to be impressed by what Biden has done with the broken down country he was passed. He has fixed covid, fixed employment, fixed GDP, fixed inflation, fixed the supply chain, fixed manufacturing in America, fixed infrastructure, fix our foreign relations, fixed the runaway deficit, fix oil production, and got Mexico to pay $1.5B for border security.. I mean.. what is left to do over the next 51/2 years?
3.1% in June is pretty decent given the vast number of people traveling this summer, and the general cost of leisure/hospitality these days.
I know this is purely ancedotal evidence but 3 of the 4 major employers in our area are no longer hiring new employees. There are rumors of possible layoffs at 2 of them as well. This is according to my HR director.
Any organization in the government whose goal is more unemployment should be disbanded. That is no the mission of a Fed.
It’s like magic. I wouldn’t necessarily say the trend and actions are entirely connected but it makes a pretty graph.
PPI also skyrocketing downward. Can’t call it yet but this may be a Goldilocks scenario. My portfolio (aggressive) is up almost 3% last two days. Most of the movement in S&P by the usual suspects but signs of a broadening out of the participation which will be key to a bull run outside of tech.
CPI: Consumer prices rose by 3.2% annually in July, picking up for the first time in 13 months | CNN Business July year over year inflation 3.2% and month to month 0.2%. Core CPI 0.2%.
Just makes it easier for the Fed to justify loosening policy when the banking crisis domino tips over.
Awesome! Now back to reality... Inflation forcing Americans to spend $709 more per month versus 2 years ago Inflation is forcing Americans to spend $709 more per month on everyday goods and services than they did just two years ago, according to the chief economist at Moody’s Analytics. “The high inflation of the past 2+ years has done lots of economic damage,” Mark Zandi tweeted on Friday following the release of the Consumer Price Index — a closely-watched measure of inflation that tracks changes in the costs of everyday goods and services. The CPI rose moderately, to 3.2% in July versus a year earlier. “Due to the high inflation, the typical household spent $202 more in a July than they did a year ago to buy the same goods and services. And they spent $709 more than they did 2 years ago,” Zandi added.
Finally businesses are starting to realize that they can't keep increasing prices to boost profits. Stabilization is on the horizon
Yes. If the previous year/years had been normal then no we wouldn’t be. It kind of becomes is 3 the new 1. If that’s ok then Yes. At some point the baseline has to be addressed
Corporate profits have been out of control and they are finally starting to come down Corporate Profits After Tax (without IVA and CCAdj)
