Posted on 09/13/2022 9:57:50 AM PDT by SeekAndFind
Joe Biden and the Democrats had been riding “almost not catastrophic” economic news for much of the summer, pointing to a drop in gasoline prices as “proof” that Biden’s policies were “working.”
Gas prices are down — for the moment. Treasury Secretary Janet Yellen believes prices at the pump will start going up again this winter.
But even falling gas prices couldn’t bring down the overall rate of inflation that came in “higher than expected” at 8.3%. Prices have climbed 0.1% since July, and the Federal Reserve is now expected to raise interest rates other three-quarters of a percentage point at its meeting later this month.
Those figures were both higher than the 8.1% headline figure and 0.1% monthly decline forecast by Refinitiv economists, likely a worrisome sign for the Federal Reserve as it seeks to cool price gains and tame consumer demand. Stock futures tanked on the surprisingly hot report, with the Dow Jones Industrial Average down more than 400 points on fears of an increasingly aggressive Fed.
So-called core prices, which strip out the more volatile measurements of food and energy, climbed 6.3% from the previous year, above the 6.1% forecast from economists. Core prices also rose more than expected on a monthly basis, jumping 0.6% in August – a bigger increase than in April, May, June and July, and a troubling sign that underlying inflationary pressures in the economy remain strong.
Biden had better pray that Fed Chairman Jerome Powell doesn’t lose his nerve and start raising rates before inflation is completely wrung out of the economy. The rising rates will almost certainly exacerbate the recession we’re already experiencing, but easing up on rates could easily lead to a double-dip recession where we fall back into one
(Excerpt) Read more at pjmedia.com ...
Folks, I’d really like an intelligent discussion on:
1) The major cause(s) of this inflation
2) What an intelligent government can do about it other than to rely on the Fed’s monetary policy.
you can flame Biden to your heart’s content while you’re at it :)
Uh, ain’t been any “sharp” gas price drops at out locale. In fact prices have been on the increase for the past two weeks. Guess the msm missed that eh? Not like they would deliberately lie or anything. 🤬
My sympathies regarding gas prices in your neck of the woods.
But honestly, in my area ( Long Island ), gas prices have dropped from above $4 a gallon to my being able to fill my car for just $3.55 today.
The question is why do we not yet see a corresponding drop in inflation? ( or does it take time ? )
Major issue beneath headline: food component of CPI #inflation rose by 11.4% y/y in August, up from +10.9% prior and fastest rate since April 1979..
https://twitter.com/LizAnnSonders/status/1569666246999678979
RE: Major issue beneath headline: food component of CPI #inflation rose by 11.4% y/y in August, up from +10.9% prior and fastest rate since April 1979..
OK, that is the observation. What is CAUSING THIS?
Average for us is $4.84 but higher in most places. Grrrrrr!
Gas is still far higher than when we lost our energy independence momentum the day Trump lost in the rigged election.
Americans should see that “way, way up” followed by just “way up” is not a wonderful situation——they’re still paying too much needlessly.
At least they now can leave their skateboards at home and use what remains from their bacon, hamburger and eggs budget to pay for some gas to get to the store.
You can take this to the bank : Everytime Congress names a law to “solve” a problem they created, the effect is usually the OPPOSITE of the name of the law.
Remember the AFFORDABLE Care Act? Let me ask you... is healthcare more affordable today 10 years after they passed it?
The only reason gas prices are coming down is because people are spending their scant resources on must have items such as food and housing. Rents are increasing in most parts of the country.
In my East TN city wages are still ridiculously higher than 2 years ago. This cost is across 2 industries that I have personal knowledge of healthcare and fast food.
Once you hire someone at $14/ hr for a $9/hr job, that isn’t going down. I would like to hear from some small biz owners, it corporate costs of personnel are high. If it costs more in these 2 industries, may also be insurance companies which would add to the Employer costs.
Of all the drivers, this refactor minimum wage increase is what I see.
What sharp drop? Its still a minimum of $3.50 a gallon near me. I recall with fondness the trump era when it was just under $2.
Heating oil is still $5.50 and has prompted me to get an electric heat pump installed. I’m sure electricity is going to be more expensive than it was previously, but at 5.50 a gallon for heating oil, I’d end up spending $4400 to heat my house this winter.
Actually the main reason in the gas price drop is Biden is stealing our SPR supplies. We are down to about 40% or less in September. I'm not absolutely sure but I believe Biden will stop tapping the SPR in September, so I would imagine the price will begin to go back up unless he just sucks it dry. The hike will likely be small up until November elections, but soon rise again to $6-$8 soon after that. As long as the pipelines are blocked and no more drilling is approved, this could be the last push to shut down the country and put you in a cardboard box under a bridge.
If a ship leaves from the ME for the US, it takes about 3 months for that supply to get to the pump and affect price. If Biden lifted the embargo on drilling today, it would be about 3-4 months to support the supply. We need about 1-2 million barrels a day to stay where we are right now.
Cause: Wildly out of control government spending.
Solution: Stop spending.
I think Diesel is more important indicator then gasoline. Diesel and regular were usually close to par on price, then this hit and diesel was 90 cents more then regular. Now it is $1.20 to $1.50 more than regular. https://www.nationalreview.com/the-morning-jolt/why-diesel-fuel-costs-are-really-rising/. The refineries are shutting down. May not matter if you can get a real car (ice), may not have fuel to drive it.
So even as gas prices went down significantly, other prices must have gone up way more than expected. D*mn, this is hurting me and my family. What extra income we could generate this year has been wiped out by this.
Spending is the cause!
Stop spending is the solution.
And I don’t see that stopping as long as we have a moron as a President and a democrat House and Senate.
But honestly, in my area ( Long Island ), gas prices have dropped from above $4 a gallon to my being able to fill my car for just $3.55 today.
It’s in the $3.10s in Centereach. Was over $5 in many areas a few months ago. For some reason LI has dropped faster than many places, I’m not sure why.
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