Posted on 09/23/2024 6:47:52 AM PDT by ChicagoConservative27
WASHINGTON (AP) — With its larger-than-usual half-point cut to its key interest rate last week, the Federal Reserve underscored its belief that it’s all but conquered inflation after three long years.
The public at large? Not so much.
Consumer surveys, including one released Friday by The Associated Press-NORC Center for Public Affairs Research, show that most Americans remain unhappy with the economy, still bruised by an inflation rate that hit a four-decade high two years ago as the economy rebounded from the pandemic recession.
Yet in the view of some economists, the shift toward steadily lower borrowing rates could eventually boost consumer sentiment. Inflation has sunk for more than two years and is nearly back down to the Fed’s 2% target. Though that means overall prices are still rising, they’re doing so much more slowly.
(Excerpt) Read more at breitbart.com ...
We are living in a post-reality world.
But the rates intentionally leave out food and energy because government claims they’re too volatile to actually reflect true inflation rates.
But that’s exactly the point. People live a real world dominated by groceries and gasoline. You can’t tell them everything is fixed now when you leave out the biggest determinants of the inflation THEY ACTUALLY EXPERIENCE.
Plus, they’re still paying the most heavily inflated prices for their everyday necessities from a couple of years ago.
Articles like this suggest that’s it’s the consumer who doesn’t get it.
The consumer gets it all right and he’s telling government stop telling me irs raining while you’re pissin on my leg.
They’ve got to make my grocery bill, utility bills, taxes, gasoline bill and my insurance bills agree. They haven’t even come close.
"Success" would be restoring the purchasing power of my dollars. Is that happening? No.
IF someone could figure out how to turn bullshit into food it would feed the entire world.
The public doesn’t understand inflation, what it is, how it happens or who is responsible for it so the answer is no, the FED will get no credit.
The fight is the fight to continue trying to have total control of the economy.
They talk “inflation” without context.
First of all they changed the definition of inflation. After Jimmy Carter was hounded out of office in part because of “inflation,” they changed how they count it. If we used Carter era numbers, instead of 20% inflation, it would be closer to 30%. And that is more like what people today are feeling.
Second, stopping “inflation” means instead of 6-7%, prices are rising at only, say 1-2% . “Yay,” big goobermint celebrates, “inflation is over, peons rejoice!” But the peons didn’t get a wage increase, so the fact that inflation slowed does nothing for their financial pain. They are still 20% or more short in wages.
Now, what is the major “progressive” effort of the current Biden and future Harris administration? Bringing in tens of millions of “migrants,” supposedly all lookuping for jobs. What that does for the current peons, like us, is ensure no employer needs to raise wages to find or keep workers.
This is why the public doesn’t agree that ending the under-stated “inflation” is much good news.
Election year
It was time to lower rates, so they did. If they pull off the “soft landing” they deserve huge kudos since the FED is hampered by govt at every turn. It’s a miracle the FED has done this well under the ridiculous actions of Dem/Publicans.
The fed does not fight inflation by reducing interest rates. Prices are reduced fir a time but the funny money is still being “printed.” Inflation is not measured by the prices of some goods while the fastest rising goods like housing are not counted.Some prices actually fall in an inflation while some goods go out of production because people try to switch to cheaper and cheaper alternatives. Wild federal spending causes inflation as more and more funny money must be printed to pay for it. On slight amelioration of the price rise is the stock market rising rapidly to soak up lots of those blown up dollars. When that crashes as it inevitably must, most other prices rise sharply as all that money flows back into the rest of the economy.Cutting interest rates should ease price rises for long enough to get Camel elected and maybe a bit more. Then we get into a cycle of trying to cure the problems caused by lower rates with still lower rates.
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