Curious to see how the Fed starts trying to counteract Trump’s self-created volatility. Consumer price index rises 0.5 percent in January Perhaps most concerning for economists, “core” inflation – which removes the particularly volatile categories of food and energy and is seen as a more fundamental measure of price pressures in the economy – rose by 0.4 percent, its largest uptick in at least six months. Core inflation was up 3.3 percent in January on an annual basis. Investors noted that the combination of rising prices and new import tax policies that are being rolled out by the Trump administration could rattle markets. “Today’s print will do little to calm the tariff-ied rates markets,” Damian McIntyre, portfolio manager at Federated Hermes, wrote in a Wednesday commentary. “Inflation has clearly paused its decline, and recent tariff announcements have the potential to increase inflation in the coming months.” Food prices showed some upward movements in Wednesday’s report, marking an area of price concern that featured in the 2024 presidential election. While food inflation is running below the headline at a 2.5-percent annual increase, it jumped by 0.4 percent on the month, the biggest increase in at least six months.
I just checked the Fox News website and there is nothing about the inflation numbers. This must be fake news
The 0.5% for January could be the lowest rate of inflation during Trump's first year in office and unlike January he won't be able to dismiss future increases in the rate of inflation by shifting the blame to Joe Biden.
What does Dear Leader/maga do with facts, science, voters, the refs or umpires calling balls and strikes, or unbiased sources of info? This is early in trump’s term so they probably let it out. Watch for it going forward “according to the latest Consumer Price Index data released Wednesday by the Bureau of Labor Statistics.”
and this inflation is not induced by covid stimulus spending, just piss poor governance fed will bump rates up and they will call for their heads
Inflation will all be fixed though when the reaping phase of the current sowing phase comes into play after tearing down the federal money spigots. Inflation will be a thing of the past when unemployment is in double digits and consumer demand plummets due to recession. Elon's Shock Doctrine.
Posted on Truth Social. Trump setting the table for a takeover of the Fed. "Interest Rates should be lowered, something which would go hand in hand with upcoming Tariffs!!! Lets Rock and Roll, America!!!" -DJT
Between his rants about sharks and batteries, his praise of a fictional cannibal, and his dancing to YMCA during his campaign Trump implied that he could bring down prices quickly. It was the latter that was mainly responsible for his election.
M2 determines the rate of inflation. The lag between increasing or decreasing M2 and the resulting inflation is roughly 14-23 months. Ron Paul would be a good choice for Fed Chairman
Everybody except dyed in the wool libs knew this was going to happen. I told you so. The US was in equilibrium and the Feds decided to put their thumb on the election scale in favor of the dems by cutting the fed funds rate 3 times, the most egregious the .75 cut in September. I don't really have an explanation for this foolhardy action. The market didn't follow the feds as rates actually went up. In 2021 and 2022, Biden gave Powell the middle finger salute while saying, my words, I'm going to spend like a drunken sailor of Saturday night shore leave and leave inflation concerns to you. You same libs will complain about Donald Trump, but your boy was in the White House until January 20 at noon. The trend now set with the feds unable to lower interest rates, may have to raise again, was set by the Biden Administration in cooperation with the federal reserve banks. We had 4 pathetic years from the dems/libs and now we have butt hurt babies on your side to deal with as they lost the election/power, and Trump received a mandate to do all he is doing. Delay, delay, delay will only go so far. The people in the streets aren't embracing the dem babies in congress, the dem press, or the Hollywood elites.
Average inflation since the 1950s has been around 3%. So when inflation was under 2.5% under Biden and falling, the Fed did the right thing and started to lower interest rates. The outlook at the time was continued lower inflation rates. And even after the Fed lowered the interest rates, inflation under Biden was never higher than 2.6%, which isn't awful. There were also 23 Noble Prize Economists that warned everyone that Trump's policies will be inflationary. This is just the beginning with tariffs starting, plus supply shortages due to labor shortages. Expect citrus prices to rise in short order due to hurricane damage and a frost in Florida, plus significant labor shortages in California fields. Construction is going to be doubly hit with tariffs and labor shortages. And there's going to be a lot of expensive construction that needs to get done in places with recent disasters, like the Baltimore Harbor Francis Scott Key Bridge and Los Angeles after the fires.
