Last Updated on: 18th June 2024, 09:30 am
One of our nation’s most pressing issues is inflation and the impacts it’s having on everyday Americans. As economists study price hikes, the Fed’s preferred measure of inflation, and other fiscal indicators, people are struggling. Despite all of the Biden administration’s talk about a flourishing economy, Americans are wondering how they’ll pay medical debts, keep up with mortgages, and afford groceries.
Years ago, the president and his Democratic allies insisted that inflation was just temporary. They claimed that in spite of all their reckless spending, Americans would begin to see more jobs, higher wages, and better opportunities.
Unsurprisingly, none of this has materialized. In fact, the Fed’s preferred measure of inflation managed to reach 2.7%, surpassing prior expectations of 2.6%. By all accounts, this means the entire country is in for some very dark days.
What the Fed’s Preferred Measure of Inflation Tells Us
America’s economy is going down the toilet with Democrats running the show; there’s no getting around this. It’s been years since the Fed cut interest rates. In fact, the Federal Reserve revealed days ago that interest rates will remain at their historically high levels of 5.25% to 5.50%. In 2023, there was talk about lowering interest rates this year; however, with inflation still ballooning, the Fed currently has no intention of bringing interest rates down.
Meanwhile, the Fed’s preferred measure of inflation exceeding expectations is part of a larger pattern. It’s been on the rise for months now. The Producer Price Index (PPI) and Consumer Price Index (CPI) aren’t looking good, either. In fact, when you compare Personal Consumption Expenditures (PCE) inflation vs. CPI, both have taken turns that don’t bode well for economic success.
By every single fiscal metric – from the Fed’s preferred measure of inflation to the multiple years since the Fed cut interest rates – our nation’s economy is going to see higher and higher costs.
Is inflation still rising? Biden and the Democrats may have the luxury of pretending like they don’t know the answer. Unfortunately, everyday Americans do not have this luxury. Since this year’s first quarter alone, growing numbers of companies have started laying off workers. Why are they doing this? You guessed it: inflation!
As individuals take hits from inflation, our nation’s businesses are feeling it too. As they’ve begun cutting jobs and/or reducing hours to make up the difference, this further hurts Americans’ wallets. Over time, people across the country are becoming less and less equipped to deal with rising interest rates, growing costs of living, and skyrocketing inflation.
Why is Inflation Still Rising?
While the Fed’s preferred measure of inflation shows our economy will get worse before it gets better, we need to understand why inflation is still rising. Ultimately, it boils down to the leadership currently occupying the White House and Congress.
It is an undeniable fact that Democrats and RINOs have aided Joe Biden in his quest for endless spending. Just last month, Congress passed a $95 billion foreign aid package. That money went to Taiwan, Ukraine, and Israel, rather than boosting jobs and opportunities here at home.
The Biden administration – with the assistance of our lawmakers – decided that being the world’s ATM was better than working to lower the Fed’s preferred measure of inflation. Rather than reading the writing on the wall, looking at PCE inflation vs. CPI, our government decided that fighting for other countries was more important.
As long as these types of decisions are made, inflation is not going to go down. In fact, we should not be surprised if the Fed’s preferred measure of inflation increases even more as this year goes on.
To bring down inflation, we have to first bring down spending. With the American government irresponsibly wasting billions of dollars that we can’t afford on frivolous, overseas matters, deep economic suffering is inevitable.
If you find yourself asking “why is inflation still rising years after it was said to be only temporary,” look no further than the caliber of leaders forcing through disastrous spending packages.
The Importance of Having the Fed Cut Interest Rates
Now more than ever, our nation desperately needs to have the Fed cut interest rates. Of course, these rates won’t go down as long as the Fed’s preferred measure of inflation is surpassing expectations.
When our country finally gets to a place where the Fed can cut interest rates, everyone will enjoy just a little more breathing room. As interest rates go down, people become more comfortable with spending, borrowing, and investing money. Folks who already have debts also face fewer obstacles in paying them off.
Today, Americans are in a predicament where interest rates and inflation are rising faster than their incomes. This is true even for people working full-time jobs or multiple part-time jobs. Some are even having to take on odd jobs just to get extra money for gas or groceries.
Make no mistake: with the current leadership in office, America will not see the Fed cut interest rates. In fact, the Fed’s preferred measure of inflation will keep skyrocketing past prior expectations.
This November, Americans have the chance to fix the direction of our economy over the next four years. The White House race – and the House and Senate elections – will determine whether we keep spending money we don’t have or start to reverse these negative trends.
The latest developments surrounding the Fed’s preferred measure of inflation should be a warning sign. As a nation, we can’t continue letting our elected leaders send billions overseas while American citizens choose between paying the mortgage or keeping the electricity on.
If you’re tired of Democrats playing games with your finances, your future, and your children’s futures, the only option is to vote them out. It is at this point that America can see lower interest rates, less inflation, and higher wages. In the meantime, rest assured that Biden and his congressional cohorts will continue working to bring the economy to its knees.
