TheEpochTimes.com has the following by
"The Federal Reserve’s preferred inflation gauge, the so-called core personal consumption expenditures (PCE) price index, vaulted in the 12 months through July to levels not seen in 30 years.
The Commerce Department said in a release Friday that core PCE rose 3.6 percent over the year in July, matching last month’s level, which was an increase from 3.5 percent in May and 3.1 percent in April.
The last time the core PCE inflation gauge saw a similar year-over-year vault was in July 1991, while the highest level the measure has hit is 10.2 percent in February 1975, when the economy was gripped in a troubling upwards wage-price spiral fueled by rising inflation expectations on the part of consumers.
The Fed looks to core PCE as a key inflation measure that informs its monetary policy, which has an inflation target of a longer-run average of 2 percent.
On a monthly basis, the core PCE gauge rose 0.3 percent between June and July, after rising 0.5 percent the prior month, suggesting inflationary pressures may have peaked.
In a speech Friday, Federal Reserve Chair Jerome Powell addressed inflationary pressures, acknowledging a “sharp run-up in inflation” driven by the rapid reopening of the economy while reiterating his oft-repeated view that price pressures would moderate once supply-side shortages and bottlenecks further abate.
Powell acknowledged the relatively high level of Friday’s core PCE print, noting it’s “well above our 2 percent longer-run objective” and that both businesses and consumers “widely report upward pressure on prices and wages.”
“We are also directly monitoring the prices of particular goods and services most affected by the pandemic and the reopening, and are beginning to see a moderation in some cases as shortages ease. Used car prices, for example, appear to have stabilized; indeed, some price indicators are beginning to fall,” Powell said.
Powell added that officials have not, so far, noted broad-based inflationary pressures but acknowledged that evidence of such pressures spreading more broadly through the economy would be concerning and would prompt a swift policy response.
The Fed chief also addressed wage pressures. In the 1970s, upward pressure on wages combined with growing consumer expectations of further price increases to push prices higher, prompting the Fed to raise interest rates. Powell said there is little evidence of this phenomenon today.
“If wage increases were to move materially and persistently above the levels of productivity gains and inflation, businesses would likely pass those increases on to customers, a process that could become the sort of ‘wage-price spiral’ seen at times in the past,” Powell said.
“Today we see little evidence of wage increases that might threaten excessive inflation. Broad-based measures of wages that adjust for compositional changes in the labor force, such as the employment cost index and the Atlanta Wage Growth Tracker, show wages moving up at a pace that appears consistent with our longer-term inflation objective,” he said.
Powell also noted disinflationary forces like technology and globalization, arguing that there is little evidence these have suddenly reversed or abated, arguing that “it seems more likely that they will continue to weigh on inflation as the pandemic passes into history.”
He said the baseline economic outlook is for the economy to continue progressing towards maximum employment, with inflation returning closer to the Fed’s goal of averaging 2 percent over time."
|
Buzz Cayton said:
( August 27th, 2021 @ 5:11 pm )
Will History repeat itself. The story goes that before the 2nd World War in Germany, a man carried a wheelbarrow full of money to the grocery store to buy a loaf of bread. He left the wheel barrow full of money on the street and run inside, when he came back the money was all over the street the wheelbarrow was gone. That's when Hitler became their savior.
|
Biden admin gave Taliban kill list of American Citizens and others | Rant & Rave, Editorials, Beaufort Observer, Op-Ed & Politics | Denmark scraps all Covid restrictions effective September 10 |
Biden wants to push this in public schools and Gov. deSantis says NO
Published: Thursday, April 25th, 2024 @ 9:19 pm
By: John Steed
|
eve 45% of Latinos support mass deportation
Published: Thursday, April 25th, 2024 @ 12:40 pm
By: John Steed
|
this at the time that pro-Hamas radicals are rioting around the country
Published: Thursday, April 25th, 2024 @ 8:01 am
By: John Steed
|
Pro death roundtable
Published: Wednesday, April 24th, 2024 @ 12:39 pm
By: Countrygirl1411
|
populist / nationalist anti-immigration AfD most popular party among young voters, CDU second
Published: Wednesday, April 24th, 2024 @ 11:25 am
By: John Steed
|
political scheme behhind raid on Mar-a-Lago
Published: Wednesday, April 24th, 2024 @ 9:16 am
By: John Steed
|
how many of these will come to North Carolina?
Published: Tuesday, April 23rd, 2024 @ 1:32 pm
By: John Steed
|
Barr had previously said he would jump off a bridge before supporting Trump
Published: Tuesday, April 23rd, 2024 @ 11:37 am
By: John Steed
|
Babis is leader of opposition in Czech parliament
Published: Tuesday, April 23rd, 2024 @ 10:28 am
By: John Steed
|
illegal alien "asylum seeker" migrants are a crime wave on both sides of the Atlantic
Published: Tuesday, April 23rd, 2024 @ 9:44 am
By: John Steed
|
only one holdout against acquital
Published: Tuesday, April 23rd, 2024 @ 9:01 am
By: John Steed
|
DEI now includes criminals?
Published: Monday, April 22nd, 2024 @ 8:33 pm
By: John Steed
|