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Slower growth and rising inflation has brought back distant cries that stagflation is coming. This would force interest rates to stay higher for longer, putting pressure on US businesses and consumers. One investor says anyone looking to hedge this risk should focus on fixed income. A pair of economic reports has brought back a word no central banker ever wants to hear: stagflation. The difficult scenario occurs when inflation rises and growth stalls, a dangerous combination just experienced by the US economy. Worries emerged when Thursday's first-quarter GDP reading slumped against expectations, growing at an annualized 1.6% rate. That's a...

Claim: President Joe Biden claimed on Wednesday that inflation was “skyrocketing” when he took office. “Look we have dramatically reduced inflation from 9% down to close to 3% we’re in a situation where we’re better situated and we were we took office, where we inflation was skyrocketing,” Biden said Wednesday at a White House press conference. The president was reacting to the latest report on the consumer price index, which showed inflation rose at an annualized rate of 4.6 percent in March, the fourth consecutive month in which inflation has exceeded expectations.

Climate change gets all the attention but Americans are far more worried about inflation, crime, illegal immigration, and the federal deficit. Results of a Gallup survey released on Monday showed that while Americans are very much aware of the claims of climate alarmists, the share of Americans who say they are very concerned about the issue is relatively small. “Among the leading issues confronting the nation, the environment ranks as a lesser public concern, with 37 percent saying they worry a great deal about environmental quality,” Gallup reports.

Immigration won’t decide the election. Polls have not yet captured what will. This may come as a surprise, but the top issue housing. More explicitly, it’s shelter costs.The EconomyThe economy is a very broad category that encompasses inflation, jobs, unemployment, wages, rent, and housing.Other polls split the economy in various pieces, such as inflation and jobs. Not a single poll mentioned housing specifically.Q: What is it that young voters really have on their minds? A: RentThe CPI Rose Sharply in March Led by Shelter and GasolineThe CPI rose 0.4 percent in March. Rent was up another 0.4 percent with gasoline...

The International Monetary Fund sounded the alarm on the Biden administration’s rampant spending as “out of line with what is needed for long-term fiscal stability.” The latest forecast from the IMF — a Washington-based group tasked with fighting financial crises worldwide — warned that the ballooning national debt and the fiscal deficit threatened to exacerbate sky-high levels of inflation while posing a long-term risk to the global economy. The IMF noted in its forecast that the US federal budget deficit grew from $1.4 trillion in fiscal 2022 to $1.7 trillion last year. ... The debt held by the public, which...

“Why Inflation Is Biden’s Most Stubborn Political Problem” by Andrew Restuccia and Sam Goldfarb at WSJ was one of those coffee-spilling articles that gave Grumpy his nickname. Not the article, which was well written, but the contents. In response to rising inflation, 'Biden and his senior aides aren’t planning any major policy or rhetorical shifts. They plan to continue talking about the president’s proposals to lower the cost of housing and prescription drugs, while slashing student-loan debt and eliminating surcharges tacked on to everything from concert tickets to banking services.' The most simple and pleasurable lessons of economics show you...

Homebuyers are feeling whiplashed by surging mortgage rates, and the outlook just turned grim. The average rate on the 30-year mortgage increased to 7.37% on Thursday, a steep climb from 7.11% at the beginning of the week, according to Mortgage News Daily. The quarter-point increase comes as rattled investors respond to a hotter-than-expected inflation reading. At the same time, a separate measure tracking weekly average rates rose to 6.88%, up from 6.82% the week prior, Freddie Mac found. Elevated rates have left would-be buyers in a pinch, causing both repeat and first-time buyers to step away from any purchase plans....

The New York Times economics parody writer Pauk Krugman — because that’s all he’s been reduced to now — can’t seem to avoid sleepwalking his way into huge, unforced errors. In another Apr. 9 column praising President Joe Biden’s alleged “Goldilocks” economy, Krugman was adamant that “while there was a wave of inflation, it seems to have broken.” Yes, Krugman wrote this just a day before the Bureau of Labor Statistics released its Apr. 10 report showing that consumer prices spiked hotter than expected at 3.5 percent year-over-year and 0.4 percent month-over-month. CNBC analyzed that core consumer prices (excluding food...

As we approach what is likely to be the most chaotic presidential election in U.S. history, trouble signs are starting to erupt for the U.S. economy. In fact, CNN is actually admitting that “the long-predicted storm clouds in the economy may actually be forming”. I can’t remember the last time that I saw a CNN article with a headline like that. But at this point, it is becoming extremely difficult for the mainstream media to avoid the truth. Inflation is getting worse at the same time that many key sectors of our economy are slowing down. If you thought that...

A recent research paper by four noted economists, including Larry Summers, the former Treasury Secretary under Barack Obama and former Harvard President, discovered that the real inflation rate during the Biden years, using pre-1983 calculations reached 18% in 2022. The number is the highest inflation rate the country has seen in over 50 years. This research project was published by these four authors at the nonpartisan National Bureau of Economic Research in late February and is just now making waves. Marijn A. Bolhuis is an economist in the Macro Policy division of the International Monetary Fund’s Strategy, Policy, and Review...

Here's a look at what's gone wrong at both chains.. These are tough times for two big US dollar store chains. In the past month, Family Dollar said it will close nearly 1,000 stores and 99 Cents Only said it will go out of business. Both companies said inflation and shoplifting have contributed to their troubles. While inflation has pressured the companies' low-income customer base and shoplifting has squeezed their profits, those factors alone can't explain their difficulties. Years of strategic mistakes and underinvestment have plagued Family Dollar and 99 Cents Only, retail analysts say. Both brands were acquired by...

The consumer price index, a key inflation gauge, rose 3.5% in March, higher than expectations and marking an acceleration for inflation. Shelter and energy costs drove the increase. Energy rose 1.1% after increasing 2.3% in February, while shelter costs were higher by 0.4% on the month and up 5.7% from a year ago. Following the report, traders pushed the first expected rate cut out to September, according to CME Group calculations.

Rising costs under President Joe Biden are not an optical illusion. Prices of dental care, eye care, and personal care have increased since 2023, March Consumer Price Index (CPI) data revealed Wednesday: — Dental services: Up 4.1 percent since March 2023 / Down 0.5 percent since February 2024 — Eyeglasses and eye care: Up 3.1 percent since March 2023 / Up 0.0 percent since February 2024 — Personal care products: Up 3.4 percent since March 2023 / Up 0.2 percent since February 2024 Overall, the consumer price index rose 0.4 percent in March compared with February. The headline index is...

Americans looking for shelter from inflation are unlikely to find any at home. Inflation under the Biden administration has sent the costs of maintaining a household soaring. Rent, electricity, and garbage collection prices are all up nearly six percent. The price of rent and associated shelter costs have jumped more than five percent since March 2023: — Owners’ equivalent rent (the opportunity cost of not renting out the home you own): Up 5.9 percent since March 2023 / Up 0.4 percent since February 2024 — Water and sewer maintenance services: Up 5.1 percent since March 2023 / Up 0.5 percent...

U.S. inflation pressures quickened again last month, with core price pressures also rising past Wall Street forecasts, a reading that will cast further doubt on market bets for a June interest rate cut from the Federal Reserve. The headline consumer price index for March was pegged by the Commerce Department at 3.5%, rising from the prior month's tally of 3.2% and coming in ahead of Wall Street's 3.4% consensus forecast. On a monthly basis, inflation edged 0.4% higher, matching the 0.4% gain in February but also coming in ahead of Wall Street's 0.3% forecast. So-called core inflation, which strips out...

During an interview with Univision that took place on March 20 and was released on Tuesday, President Joe Biden responded to a question on what he would say to people who don’t feel economic growth or job creation in their paychecks and pockets by stating that “it’s not yet” reflected and touting his work on overdraft and junk fees. Interviewer Enrique Acevedo asked, “I’ve heard you talk about economic growth, job creation. What do you say to the families — not just Latino families — but families across the country, that don’t feel that economic growth, that job creation reflected...

The nationwide average price for regular gas hit a reported six-month high of $3.60 a gallon on Tuesday, spiking more than 50 percent under President Joe Biden. In the past month, gas prices rose more than 20 cents. They are over a dollar more expensive ($2.38) than when Trump left office. Gas prices remain high and could go higher due to industry and political factors. Biden’s economic war on American energy independence during instability in the Middle East and in Ukraine are significant factors.

Nathan Frederiksen is doing pretty well for himself. He turns 40 this year and is on track to retire by 60. It takes some sacrifice — he drives the “unsexiest car ever,” takes a DIY approach to home repairs and doesn’t eat out much — but he’s able to save 10% of his income for retirement and maintain an emergency savings fund while supporting his wife and four children in the suburbs of Boise, Idaho. “I understand that I’ve been lucky with some of my job prospects, but I don’t make a crazy amount of money,” he told CNN. “I...

The Commerce-based operators of 99 Cents Only stores announced today they will shutter all 371 of its locations, with liquidation sales set to begin Friday. The move will impact all company locations in California, Arizona, Nevada and Texas. "This was an extremely difficult decision and is not the outcome we expected or hoped to achieve," interim company CEO Mike Simoncic said in a statement. "Unfortunately, the last several years have presented significant and lasting challenges in the retail environment, including the unprecedented impact of the COVID-19 pandemic, shifting consumer demand, rising levels of shrink, persistent inflationary pressures and other macroeconomic...

The number of cities where the typical home price is at least $1 million has dramatically increased over the past year. There are now 550 U.S. cities where an average home is worth $1 million or more, according to a new analysis from Zillow. The lack of available homes for sale is keeping prices elevated and pushing values even higher. Even as sales inventory has begun to tick up this spring, a typical home in the U.S. is currently worth 4.2% more than it was last year. Homes in million-dollar cities saw values grow 4.6%. Zillow anticipates interest rate decreases...