Inflation is Transitory! Inflation is Transitory! Inflation is Transitory!

Clearly, the wrong answer. The May CPI is 3.3% for all and 3.4% less food and energy. Not only did the Fed start fighting inflation 6 months too late, but they also took their foot off the brake too soon. Instead of pumping sunshine up everyone's skirts with projections of multiple rate cuts in 2024 before their job was finished, they should have raised rates a couple of more times to finish the job of bringing inflation down to the Fed target of 2.0%.

The Fed could/should have done this before the US entered into the 2024 election season but didn't. Now we are stuck with an election approaching and a Fed Reserve that likely won't put their thumb on the election scale by either raising or lowering rates. Basically, inflation is in no-no-land and the Fed Reserve is impotent to act with inflation well above the 2.0% target.

I do agree that the Feds lack of results speak for themselves.

 

You are entitled to your wrong opinions. Past is prologue. All I see is blah, blah, blah.

 

Answered and with facts. Past is prologue. I touched on everything you wanted me to discuss including my opinion that the Tax Cut and Job Act would be made permanent and there would be no new tax cuts on top of this action.

Your question:

Explain the effects of the above on inflation. I’ll hang up and listen.

We had the same exact components in Trump's first term. I answered and included proof that all of these things were done with inflation at a peak of 2.44%, a low of 1.23%, and an average of 1.90% over 4 years.

Since you obviously have a direct line to Almighty God, I ask you to predict the future. I say predict as nobody including you knows what the future holds. Again, past is prologue unless you can prove differently.

It isn't surprising that you don't like or accept the truth. It is impossible to get someone to see when they are willfully blind.

To add something new for you, the Fed Reserve did a good job in the Trump presidency. To keep inflation in check, the Fed raised interest rates 7 times in Trump's first 2 years. Because inflation came down as a result of the increases, the Fed was able to lower rates 3 times in year 3. Of course, year 4 will always be remembered as the Fed reduced rates to close to zero during covid. The bottom line is Trump groused about too many rate increases in his first 2 year, some call it taking away the punch bowl too early, but the Fed, unlike in the Biden presidency, was very effective.

My rate prediction if Trump is elected:

Look for the Fed Reserve to raise rates a few more times to get inflation down to their 2.0% target range. They wouldn't do it on Biden's watch, but they will do it on Trump's watch, fighting inflation will win out over the risk of recession.

 

Corrected in post above. Thanks.

 

3.3% all and 3.4% less energy and food. Inflation is too high and again the Fed Reserve is asleep at the switch and has been since during the last quarter of 2023. Raise the freaking rates already. Maybe we'll have a recession, maybe we won't. What we for sure have is inflation running well above the Fed 2.0% target rate. This is the fight that must be made, maybe not under Biden but certainly under Trump as was done in his presidency, the decision must be made to accept high inflation or raise rates and risk recession.

Historically, the Fed has always raised rates. They waited too long under Biden and now they took their foot off the brake too soon. I wouldn't be at all surprised to see financial pundits start to predict a rising rate rather than holding or reducing rates. JMHO, holding or reducing rates in this environment is asinine.

 

How can you be this obtuse? I answered in the only way anyone can. You just don't want to see the truth. I'll not repeat what I've already written as you clearly don't understand. I suggest you go back and work on your lack of reading comprehension.

No, inflation won't go down to the Fed 2.0% target without the nudging to do so regardless of if it's Biden or Trump. I recommend a real reduction in fiscal spending along with a few more interest rate increases to get the job done. The economy is likely strong enough that it could be done and avoid a recession. The ravages of inflation are worse than the risk of recession.

2020 wasn't Trump's deficit. It was a bipartisan fight to combat covid actions. I'll be damned if I'll let you saddle Trump with the deficit in 2020 and demand that Trump doesn't get credit for the peak of homeownership at 67.4 during 2020 covid. You can only have these two issues as one way or the other with both being in agreement.

What shot Bidenflation to the moon was his 3 large fiscal spending programs. The covid $ had largely worked through the system by the time Biden was inaugurated. To blame Trump for Bidenflation is dishonest to the point of lying. Even ex-Obama advisers were telling Biden the added stimulus spending wasn't needed and would be inflationary. Not disliking any increase in fiscal spending, Biden moved ahead with his spending which caused all of the Bidenflation that followed.

Bottom line, the majority of people were better off under Trump than under Biden. I believe they will show their disenchantment with a very unpopular Biden in November. Hello, Trump 47.

 

At no point has any of the policies you are concerned about resulted in inflation that couldn't be controlled by an active and effective Federal Reserve as I showed in one of my above posts on this page.

Please, let's relive the past. The US has to get out from under Dictator Biden. It's time for a change election putting the adults back in charge, think that is what the dems said when Biden won and before he screwed up the nation.