Inflation fight has a 'long way to go,' Federal Reserve Chair Jerome Powell says

[Scott]

 

Federal Reserve Chair Jerome Powell said Tuesday that the central bank's fight against inflation has "a long way to go," citing a blockbuster jobs report last week that showed the labor market remains hot despite the Fed's efforts to cool the economy.

"This process is likely to take quite a bit of time," Powell said. "It's not likely to be smooth."

Consumer prices rose 6.5% over the yearlong period ending in December, which amounts to a significant slowdown from a summer peak but is more than triple the Federal Reserve's target of 2%.

https://abcnews.go.com/Business/inflation-fight-long-federal-reserve-chair-jerome-powell/story?id=96953701

[Tug]

I agree everything is expensive it is getting better but we do indeed have a ways to go I’m glad it’s in the hands of competent professionals with a potus that’s smart enough to let them do their jobs 

[SunnyinBangrak]

1 hour ago, Tug said:

I agree everything is expensive it is getting better but we do indeed have a ways to go I’m glad it’s in the hands of competent professionals with a potus that’s smart enough to let them do their jobs 

"Let’s start with inflation, which a few months ago hit a 40-year high. In December 2020, the last full month in office for President Donald Trump, the rate of inflation was 1.4%, according to the Bureau of Labor Statistics (BLS). The average for the entire year of 2020 was 1.2%, data show.

But after Biden killed the Keystone XL pipeline, froze student debt collection, rejoined the Paris climate accords, made a pathway for illegals to gain citizenship, and halted construction on the border wall — all actions he took on Day 1 — inflation started to climb."

https://www.dailywire.com/news/by-the-numbers-the-state-of-bidens-america-is-absolutely-abysmal

 

Ah yes, those "competent professionals with a potus that’s smart enough to let them do their jobs" !!! 

Edited February 7, 2023 by SunnyinBangrak

[Tug]

1 hour ago, SunnyinBangrak said:

"Let’s start with inflation, which a few months ago hit a 40-year high. In December 2020, the last full month in office for President Donald Trump, the rate of inflation was 1.4%, according to the Bureau of Labor Statistics (BLS). The average for the entire year of 2020 was 1.2%, data show.

But after Biden killed the Keystone XL pipeline, froze student debt collection, rejoined the Paris climate accords, made a pathway for illegals to gain citizenship, and halted construction on the border wall — all actions he took on Day 1 — inflation started to climb."

https://www.dailywire.com/news/by-the-numbers-the-state-of-bidens-america-is-absolutely-abysmal

 

Ah yes, those "competent professionals with a potus that’s smart enough to let them do their jobs" !!! 

Yup!

[JonnyF]

5 hours ago, Tug said:

I agree everything is expensive it is getting better but we do indeed have a ways to go I’m glad it’s in the hands of competent professionals with a potus that’s smart enough to let them do their jobs 

The evidence suggests otherwise.

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4 hours ago, SunnyinBangrak said:

"Let’s start with inflation, which a few months ago hit a 40-year high. In December 2020, the last full month in office for President Donald Trump, the rate of inflation was 1.4%, according to the Bureau of Labor Statistics (BLS). The average for the entire year of 2020 was 1.2%, data show.

But after Biden killed the Keystone XL pipeline, froze student debt collection, rejoined the Paris climate accords, made a pathway for illegals to gain citizenship, and halted construction on the border wall — all actions he took on Day 1 — inflation started to climb."

https://www.dailywire.com/news/by-the-numbers-the-state-of-bidens-america-is-absolutely-abysmal

 

Ah yes, those "competent professionals with a potus that’s smart enough to let them do their jobs" !!! 

Well, if you're going to have Trump take credit for the low inflation rate when he left office, then it's only fair he should be given credit for the unemployment rate, too. In January 2021 the unemployment rate was 6%. Now it's. 3.4%. The lowest level since 1969.

https://www.bls.gov/news.release/archives/empsit_02052021.pdf

The labor force participation rate was 61.1%. Now it's 62.4%

https://fred.stlouisfed.org/series/CIVPART

 

Of course, you and I could both be honest and factor in the economic effects of the covid pandemic and the war in Ukraine. But why do that when playing fast and loose with the facts is so much more fun.

[placeholder]

27 minutes ago, JonnyF said:

The evidence suggests otherwise.

What evidence would that be? The fact that the unemployment rate is the lowest since 1969? Or that inflation in the USA for the last 6 months has increased at a pace of about 2%? Please share with us the evidence.

[placeholder]

5 hours ago, Tug said:

I agree everything is expensive it is getting better but we do indeed have a ways to go I’m glad it’s in the hands of competent professionals with a potus that’s smart enough to let them do their jobs 

I'm not so sure that the current situation is entirely or even mostly owed to the Fed. It's becoming very clear the most of the rise in inflation was due to supply side problems created by the pandemic. There was a shortage of workers and production fell. The worldwide chip shortage is a particularly vivid example of that. That affected huge swathes of industry including automotive manufacturers.

We can see that this is the case because as production has recovered inflation has sharply declined in the last 6 months. It's useful to keep in mind that that ordinarily inflation is measured on a year to year basis to discount seasonal variations and statistical flukes. The problem is that in unusual situations like the one that the US economy is in today. that is misleading. For instance, increases in rent and housing account for 40% of the inflation measures. But according tp privately gathered data, like from Zillow, rents have declined sharply in the past several months. That decline won't be reflected in federal figures until a year from when it started to happen. That's one reason why inflation is now much lower than the official annual figure shows.