As we have reported, the administration has backed away from using the term “Bidenomics” because it found that the nickname was not received with much enthusiasm by the public. In fact, most Americans know that their quality of life has suffered under Bidenomics, as rampant inflation has eroded their purchasing power and interest rates make borrowing painful.
See:
Team Biden pulls back from promoting “Bidenomics.” It’s time.
What Treasury Secretary Janet Yellen once called “transient inflation” has proven to be truly persistent, and prices continue to soar despite several interest rate hikes by the Federal Reserve.
Speaking at the annual general meeting of the Foreign Bankers’ Association in Amsterdam, US Federal Reserve Chairman Jerome Powell said that despite their efforts, the inflation rate has fallen remains surprising.
“We didn’t expect this to be a smooth journey. But these [inflation readings] were higher than I think anyone expected,” Powell said. “This showed us that we have to be patient and let the restrictive policies do their work.”
While he expects inflation to fall over the course of the year, he noted that this has not happened yet.
“I think it’s really about keeping policy at the current rate for longer than expected,” he said.
It’s unclear to me what was “unexpected”. The minute is 1.2 trillion dollars Inflation Reduction Act When the law was signed in 2022, anyone with any brains knew that pumping such huge sums into the economy would raise inflation.
During the conversation, he also ominously said that the US is moving in a fiscally unsustainable direction:
Jerome Powell – US fiscal policy is on an unsustainable path pic.twitter.com/zDl5ndXMdI
– Derrest (@DerrestWilliams) May 14, 2024
For everyone who suffers from the horrendous interest rates, which, among other things, make buying a house almost impossible for many, it doesn’t look like support is on the way:
Jerome Powell calls for higher interest rates for a longer period of time. pic.twitter.com/yott0M98iF
– Derrest (@DerrestWilliams) May 14, 2024
See:
The Failing American Dream and the Dwindling Middle Class (VIP)
Powell stated that he believes the federal funds rate will remain the same in the near future:
However, Powell also reiterated that he does not expect the Fed to raise interest rates.
The Fed has kept its key federal funds rate in the target range of 5.25% to 5.5%. Although the rate has been there since July, it is the highest level in about 23 years.
“Based on the data we have, I don’t think it’s likely that the next step we take would be a rate hike,” he said. “I think it’s more likely that we’re at a point where we keep the key interest rate where it is.”
The president may have dropped the term “Bidenomics,” but I think conservatives and Republicans should exploit it at every opportunity to remind us who got us into this mess.
🚨Inflation will not go away. This is not good. The producer price index (PPI) rose by 0.5% (expected by 0.3%) in April, while the “core” PPI also increased by 0.5% (expected by 0.2%).
Where is Joe Biden?
Where is Jerome Powell?
Where is Janet Yellen? pic.twitter.com/9kLZXybLIp– AJ Huber (@Huberton) May 14, 2024
See also:
Scarlotta Bros: Staten Island Twins go viral with hysterical videos about inflation
Joe Biden has destroyed the American dream
The devil’s double whammy: Inflation and rising interest rates hinder homeownership
