In the August IBD/TIPP Poll, 82% are worried about inflation. Price increases in energy, food, and groceries can cause a perceptual shift, causing consumers to cut back on their spending.
Low-income households are unable to absorb price increases, particularly for necessities such as food, energy, and shelter, because they consume a large portion of their income. Sharp inflation is likely to impact retirees as well, as the purchasing power of the dollar declines.
To boost liquidity, the Fed has been purchasing $120 billion in government-backed bonds each month -- $80 billion in Treasury debt and $40 billion in mortgage-backed securities. The inflation data will be one of the critical inputs in the Fed's decision to taper its asset purchases.
The Federal Reserve believes that long-run inflation of 2%, measured by the annual change in the price index for personal consumption expenditures, is most consistent with its maximum employment and price stability mandate.
August is the fifth month above the Fed's target.
We are in an uncertain time. There are two camps of economists. One believes that inflation is transitory, and the other thinks that with the current level of spending and stimulus, inflation is here to stay for an extended period. No one knows who is correct.
Persistent inflation is likely to frighten politicians – putting a stop to their insatiable appetite for spending and taxes, and restoring some semblance of austerity.
Inflation affects all Americans across parties and ideologies. If consumers experience protracted inflation without attendant wage increases, the problem may resonate with midterm voters in 2022.
The argument is that a decline in the price level, which is labeled deflation, weakens consumer and business expenditure, thereby paralyzing economic activity.
According to shipping data cited by CNBC, dozens of tankers remain stranded in the Persian Gulf, with estimates suggesting a backlog of roughly 118 vessels
The increase in pending home sales exceeded economists' expectations, indicating that buyer demand remains resilient even as financing costs continue to weigh on affordability.
The race would likely have been called for Janeese Lewis George, a D.C. councilmember who is aligned with the Democratic Socialists of America, if the city had not adopted ranked choice voting in a 2024 ballot initiative.
The postponement comes as both Washington and Tehran work to advance discussions following the signing of a memorandum of understanding intended to reduce tensions and establish a framework for broader negotiations.
Let me point out that our adversaries, China, Russia, and other places around the globe, don’t have this racial essentialism because they believe it is innate to human nature.
