Posted on 10/01/2021 10:30:22 AM PDT by MNJohnnie
Inflation ran red hot in August, according to the Commerce Department, with the headline Personal Consumption Expenditures (PCE) index surging 4.3 percent over the year to a level not seen since 1991.
Meanwhile, the core PCE inflation index, which excludes the volatile categories of food and energy and is the Federal Reserve’s preferred inflation gauge, rose in the year through August at 3.6 percent, the Commerce Department announced on Oct. 1. August’s 3.6 percent annual core PCE growth matched the June and July figure, which was the highest level in 30 years.
That’s a rate of inflation well above the Fed’s 2 percent target, pressuring policymakers as they consider when to roll back some of the stimulus measures that helped lift the economy out of the pandemic lows but now appear increasingly out of kilter with rising prices.
Federal Reserve Chair Jerome Powell on Wednesday spoke of “tension” between inflation that is high and well above target and ongoing labor market slack, reflecting the Fed’s policy challenge of balancing its dual mandate of price stability and maximum employment. His remarks also conjured up the specter of stagflation—a condition of slowing economic growth and fast-rising prices that bedeviled the U.S. economy in the 1970s.
Some economists have warned that surging energy prices are inflicting major damage to struggling supply chains, pushing up the risk of stagflation. Others have expressed concern that supply-side woes more generally could combine with ultra-easy fiscal and monetary policies and high debt ratios to spark a full-blown stagflationary crisis.
While Fed officials have struck a more cautious tone on inflation in recent statements, they maintain it’s a temporary phenomenon that will abate once supply chain dislocations ease.
New York Federal Reserve Bank President John Williams said recently that consumer expectations for what the rate of inflation will be five years down the road “have barely budged” and they remain “well-anchored” at around the Fed’s 2 percent objective. He added, however, that there are upside risks and a “great deal of uncertainty” around the inflationary outlook.
The monthly core PCE gauge, which measures changes in the index from month to month, held steady at 0.3 percent in August, matching the July rate but down from 0.5 percent in June and 0.6 percent in May, according to the Commerce Department. This suggests peak inflationary pressures may have passed.
Powell told lawmakers on Thursday that he anticipates some relief from high inflation in the months ahead.
“New York Federal Reserve Bank President John Williams said recently that consumer expectations for what the rate of inflation will be five years down the road “have barely budged” and they remain “well-anchored” at around the Fed’s 2 percent objective.”
“consumer expectations”= normalcy bias at best
Look for them to change the gauge or the formula, so Biden can claim it’s actually cheaper now than when Trump was in......................
Somebody supported these stupid Democrat sons of bitches.
Probably the same idiots who come here to tell us the Republicans are in charge.
The Democrat’s Congress is poised to throw $3.7 trillion of fiat gasoline onto the inflationary fire.
Well remember, we are told this is just transitory inflation. Which apparently is not as bad as regular inflation. Although they never really define for us what transitory inflation is.
Both direct consequences of Biden's EOs and the Biden Democrats in Congress's actions.
Yes. But like the downtrodden people under the Stalin Soviet system the headlines "Five Year Plan for Agriculture Exceeds Expectations. Glorious Harvests Again." the starving people in long lines to get basics of survival didn't believe it.
However, today's Dems and young people are quite dumb.
And just the the Stalinist, the Biden Democrats are gearing up their propaganda machine to blame wreckers and saboteurs for their failures.
I suspect to see the US Congress to be conducting show trials of business executives by spring 2022.
Propaganda always works on masses, always. I’d like to see liberty minded leaders get good at it. Employ slogans, memes, and passion. The Marxists are good at it, and have now infected every meaningful institution. Andrew Breitbart was right about everything, probably why he’s now dead.
We have been lied to over and over again about Covid. Masks are dangerous, two weeks to flatten the curve, vaccinations are voluntary.
Likewise we are being told that this recent inflation is temporary.
So, how do I believe them on this?
“Liberty gives everybody free stuff and keeps us safe...”
;-)
Not much of a surge...4.3% is nothing to get excited about.
Great time to tell 10%+ of your work force to take a walk....
Gas is up 43%.
Rents are up 20%.
The only reason 4.x% looks good is the 12 month lookback into the good Trump months.
That 4.3% in a single month August 2021.
4.3% is for the month of Aug 2021
“The monthly core PCE gauge, which measures changes in the index from month to month, held steady at 0.3 percent in August” x 12 months = 3.6%, not 4.3%.
It said year over year...
You just will not stop living in denial.
Every expert in the world telling you your opinion is dead wrong and yet you cling to it.
There is just no hope for you
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