These fake data points never tell the truth. Every time these reports come out they are debunked within days, as we now have a Soviet style system in place where they lie as the norm to the AMerican people. But let’s play along…
Last month, the United States saw an unexpected decline in prices, fueling optimism that the Federal Reserve might soon cut interest rates. Inflation decreased by 0.1% in June, following a stagnant rate in May. This marked the second consecutive month of subdued consumer price index (CPI) readings, suggesting that inflation may be cooling down.
President Joe Biden, who is vying for re-election amidst concerns over rising living costs, praised this development as “significant progress” in the battle against inflation. “Prices are falling for cars, appliances, and airfares, and grocery prices have fallen since the beginning of the year,” Biden stated. He also highlighted that wages are increasing faster than prices, attributing this improvement to his economic policies. He is lying on all points.
US consumer prices decline, bringing Fed closer to rate cuts#USA #BusinessNews
Read: https://t.co/LipsxNJD8Fhttps://t.co/LipsxNJD8F
— WION (@WIONews) July 11, 2024
Conversely, former President Donald Trump, poised to become the Republican nominee for president, has criticized Biden’s administration for contributing to higher prices through what he describes as “reckless big government spending.” Trump’s campaign rhetoric blames Biden for the inflationary pressures faced by Americans. He is completely correct of course, as Biden plunges the country in massive debt more and more each day. And then lies about it. People have had enough.
The annual CPI increase slowed to 3.0% in June, down from 3.3% in May, the smallest rise in a year. This figure represents a significant reduction from the peak of 9.1% in June 2022, the highest inflation rate in a generation. Economists had predicted a slight monthly increase of 0.1% and an annual rise of 3.1%, but the actual figures were slightly lower, boosting hopes for monetary policy easing.
‘ TAME US JUNE CPI SMOOTHES PATH FOR FED EASE
U.S. consumer prices unexpectedly fell in June and the annual increase was the smallest in a year, reinforcing views that the disinflation trend was back on track and drawing the Federal Reserve another step closer to cutting… pic.twitter.com/zoLdLoqdse
— AMN (@alphamarketnews) July 11, 2024
Ian Shepherdson, chief economist at Pantheon Macroeconomics, noted that June’s CPI data provided strong evidence of widespread disinflation. “This gives the Fed the green light to ease rates multiple times this year,” Shepherdson remarked, reflecting the growing expectation among financial markets and economists that the Federal Reserve will initiate an easing cycle soon.
Federal Reserve Chair Jerome Powell recently cautioned that maintaining high-interest rates for too long could jeopardize economic growth and employment. Speaking to Congress, Powell emphasized that elevated inflation is not the only risk, and the Fed is carefully monitoring economic data. We are sure he will raise rates once Trump wins in November.
The CPI report follows news that the unemployment rate rose to a two-and-a-half-year high of 4.1% in June, up from 4.0% in May. Additionally, economic growth has slowed in response to the central bank’s significant rate hikes in 2022 and 2023. The second-quarter gross domestic product (GDP) is forecasted to grow at an annualized rate of 1.8%, which policymakers consider a non-inflationary growth pace.
US Consumer Price Index (CPI) inflation data is back down at 3% for the first time since July 2023 and below expectations of 3.1% for the year ending June 2024.
The band for the Federal Reserve to cut interest rates is 2% to 3%.
Many items in the yearly index witnessed declines… pic.twitter.com/c1JqRIGfBy
— The Secret Sauce by Private Capital Management (@secretsauce_pcm) July 11, 2024
A cooling labor market and a slowing economy have led many to anticipate that the Federal Reserve will start cutting rates by September. This expectation is based on the need to balance the risk of inflation with the broader goal of sustaining economic growth and employment. This is pure fantasy.
Key Points:
i. U.S. inflation fell by 0.1% in June, marking the second month of subdued CPI readings.
ii. President Biden praised the progress, highlighting falling prices for various goods and rising wages.
iii. Former President Trump criticized Biden’s administration for contributing to inflation through excessive government spending.
iv. The annual CPI increase slowed to 3.0% in June, down from 3.3% in May, significantly lower than the peak of 9.1% in June 2022.
v. The Federal Reserve is expected to start cutting interest rates by September amid signs of cooling inflation and a slowing economy.
Lap Fu Ip – Reprinted with permission of Whatfinger News
