Posted on 06/30/2022 8:55:20 AM PDT by Browns Ultra Fan
The US economy is slowing as inflation ravages consumers. US Regular Gasoline prices, for example, are up 104% under President Biden which helps to slow the economy.
US personal consumption expenditures fell to +0.2% MoM in May as “inflation” or real personal consumption expenditures PRICES rose +6.3% YoY as The Fed’s balance sheet (aka, Master Blaster!) remains.
As I mentioned above, US regular gasoline prices are UP 103% under President Biden, diesel prices (the cost of shipping goods to markets like … food is up 119% under Biden while CRB foodstuffs is up 55% under China Joe.
Now we have mortgage rates in the US falling for the first time in four weeks. The average for a 30-year loan was 5.7%, down from 5.81% last week, Freddie Mac said in a statement Thursday.
This year’s Fourth of July celebration is going to cost 18% more than last year’s celebration.
So, yes, the US economy is slowing.
(Excerpt) Read more at confoundedinterest.net ...
Is there an economic genius on FR that can explain to me why CPE is the Fed’s preferred inflation statistic for inflation? Seems to me there is a huge disconnect between what the majority of US citizens experience with inflation and what the Fed uses as input to their decision making. CPI and to a lesser degree PPI are unrealistic statistics for inflation. CPE is even worse.
I instantly hit the brakes on spending last month....
Just in case
It’s not like I need more stuff...
So glad our kid got into their first house late last year, bidding on it right before Thanksgiving. Locked in on a 3% 30-year loan. Right now, that 3% is looking awfully good, especially since houses in their area have spiked over 10% since Thanksgiving. I suspect the latter may not hold up given where mortgage rates are right now.
A lot of people are doubtless trying to use up some of their hoarded items from during the pandemic.
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