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With inflation still raging, brace for a ‘hard-landing’ recession as the Fed spikes interest rates further
nypost ^ | 9/14/2022 | EDITORIAL BOARD

Posted on 09/14/2022 5:02:28 PM PDT by bitt

Consumer prices surged again last month — they’re now up 8.3% over last year. But what do you expect? President Joe Biden and Congress have done zilch to stem the tide and instead have kept fueling it.

That’s left the job to the Federal Reserve, which will now have to risk a painful “hard landing” recession to rein in runaway inflation.

Last month Biden boasted that the economy had “0% inflation” in July, though prices were up 8.5% over a year earlier, near the worst in 40 years. He and his supporters tried to pretend the crisis was over, or at least easing.

Yet figures Tuesday from the Bureau of Labor Statistics show they’re actually still rising and up more than economists expected, despite falling gasoline costs — themselves the result of Americans driving less thanks to (you guessed it) . . . higher gas prices.

Food prices rose 11.4% in the last year; electric bills surged 15.8%; piped gas, 33%. A new car will run you 10.1% more, on average. And on and on — with no end in sight.

So much for Biden’s Inflation Reduction Act, which does nothing to curb inflation but instead spends money on green-agenda subsidies, a surefire way to keep inflation raging. The law also slaps Americans with billions in new taxes, which will only discourage investment and make a hard-landing recession even harder-landing.

Throw in a tight labor market and the Federal Reserve is going to have a near-impossible time trying to curb price hikes via steep interest-rate upticks without also tanking the economy. It’s expected to boost rates by a larger-than-normal .75 percentage points next week, though some think even a full-point raise is possible.

(Excerpt) Read more at nypost.com ...


TOPICS: Business/Economy; Culture/Society; Editorial; Government
KEYWORDS: bideneffect; hardlanding; inflation; recession
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1 posted on 09/14/2022 5:02:28 PM PDT by bitt
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To: null and void; aragorn; EnigmaticAnomaly; kalee; Kale; AZ .44 MAG; Baynative; bgill; bitt; ...

p


2 posted on 09/14/2022 5:02:42 PM PDT by bitt ( <img src=' 'width=50%> )
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To: bitt

(they’re now up 8.3% over last year. )

(in-store) Baked bread at Walmart is up 47% over last year


3 posted on 09/14/2022 5:11:58 PM PDT by SaveFerris (Luke 17:28 ... as it was in the days of Lot; they did eat, they drank, they bought, they sold ......)
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To: bitt

Interest rates should never have been close to 0% continuously since 2009. That is not a healthy economy. Punishing saving and encouraging debt is not a good strategy. We need to get back to savings and money markets earning 3-5%, long term A bonds 6-7% when inflation is 2-3%. Encourage and reward saving, quality bonds earns a real return and the stock market is not the only game in town.

Interest rates (money markets, bonds) at the current levels are still highly negative in real terms. That is not healthy.


4 posted on 09/14/2022 5:16:13 PM PDT by rigelkentaurus
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To: SaveFerris

5 posted on 09/14/2022 5:16:41 PM PDT by BenLurkin (The above is not a statement of fact. It is either opinion, or satire, or both.)
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To: BenLurkin

Every single item at Walmart - at least food is way up.

84 cent chili is $1.34 or $1.36 right now.


6 posted on 09/14/2022 5:20:26 PM PDT by SaveFerris (Luke 17:28 ... as it was in the days of Lot; they did eat, they drank, they bought, they sold ......)
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To: bitt

The patient has raging sugar levels.

Joe and Nancy: Inject another gallon of fructose.


7 posted on 09/14/2022 5:20:34 PM PDT by lurk (u)
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To: bitt

8 posted on 09/14/2022 5:25:29 PM PDT by Jeff Chandler (THE ISSUE IS NEVER THE ISSUE. THE REVOLUTION IS THE ISSUE.)
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To: bitt

There us no such thing as a soft landing. It does not exist


9 posted on 09/14/2022 5:26:32 PM PDT by frogjerk (I will not do business with fascists)
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To: bitt


10 posted on 09/14/2022 5:27:35 PM PDT by Chode (there is no fall back position, there's no rally point, there is no LZ... we're on our own. #FJB)
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To: lurk

get short.
get short.
get short.

if you cant stomach the risk of actually shorting stocks or options/option spreads, look at an inverse etf. Tons of them out there.

here are 3 of the better ones:
SH
SDS
SPXU

Get short.
Get short.

You will thank me.


11 posted on 09/14/2022 5:29:25 PM PDT by tanstaafl.72555
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To: bitt

What gives? Biden said we have zero inflation. That might be true, but I noticed that things cost a lot more than last year. I must be losing savings because I have a leak in my bank account and not inflation. Should I trust my lying eyes?


12 posted on 09/14/2022 5:30:28 PM PDT by richardtavor ( )
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To: bitt

It’s a tax.


13 posted on 09/14/2022 5:38:12 PM PDT by virgil (The evil that men do lives after them )
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To: tanstaafl.72555

Be careful on advice to the market.

Shorting takes capital and guts.

An ability to get burned. If you can afford to lose it, go for it.


14 posted on 09/14/2022 5:53:08 PM PDT by eyedigress (Trump is my President!)
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To: virgil

Yes it is.

Government hauls in their tax based on a percentage of cost.


15 posted on 09/14/2022 5:54:52 PM PDT by eyedigress (Trump is my President!)
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To: bitt

Raising interest rates increases the costs of items.
Is the plan to cure high prices high prices? Has that ever worked? ( 1980s we grew our way out. I do not see productivity numbers that now indicate growth. But I’m not an Economist.).


16 posted on 09/14/2022 6:13:11 PM PDT by griswold3
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To: richardtavor

BIDEN LIES


17 posted on 09/14/2022 6:38:34 PM PDT by ridesthemiles
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To: frogjerk

yes its happy talk that a soft landing is possible

volcker pushed interest rates to 21% to crush inflation


18 posted on 09/14/2022 7:01:05 PM PDT by joshua c (to disrupt the system, we must disrupt our lives, cut the cable tv)
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To: bitt

Destroying the economy seems intentional..


19 posted on 09/14/2022 8:13:00 PM PDT by GOPJ (Edward Biden's 'WAR ON THE AMERICAN PEOPLE' speech is history's Jimmah Carter's BIG RABBIT blunder..)
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To: bitt

How hard a landing is a crash ?


20 posted on 09/15/2022 6:46:34 AM PDT by no-to-illegals (The enemy has US surrounded. May God have mercy on them.)
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