Inflation Jolts Markets as Biden Administration Fails to Steer Economic Course
Shared By Peter Boykin – American Political Commentator / Citizen Journalist / Political Candidate
Inflation report spooks market
Inflation Jolts Markets as Biden Administration Fails to Steer Economic Course
In a turbulent economic landscape, the latest inflation report delivered a harsh blow to the market, sending stocks into a downward spiral. The Biden administration grapples with the repercussions as inflation in January surpassed economists’ expectations, causing prices to surge by 3.1% compared to the same period last year.
Despite a slight dip from December’s 3.4%, the January inflation figure remains a point of concern for the Biden regime, desperately seeking to assert that inflation is within the 2% range. The stark reality is that the last time inflation stood below 3% was in March 2021, with a mere 1.4% when Trump vacated the office.
Some of the biggest year-over-year price increases in January were:
🚙 Car insurance: +20.6%
🛠️ Home repairs: +18.2%
🍼 Baby food: +8.7%
🏡 Shelter (rent/mortgage): +6%
🏥 Hospital services: +6.7%
🛞 Car repairs: +7.9%
January witnessed significant year-over-year price hikes, with car insurance soaring by 20.6%, home repairs by 18.2%, and baby food by 8.7%. Additionally, shelter costs (rent/mortgage) rose by 6%, while hospital services and car repairs experienced increases of 6.7% and 7.9%, respectively.
However, the figure causing unease among investors is the month-over-month increase, where prices surged by 0.3% from the previous month, exceeding the expected 0.2%. The importance lies in this incremental change, signaling a departure from the trend seen since September 2023 and indicating a continued struggle against inflation.
The Federal Reserve’s response to the inflation challenge involved raising interest rates from nearly 0% to 5.5% since June 2022 when inflation peaked at 9.1%. This adjustment has had a cascading effect on credit card interest, auto loans, mortgages, and more, impacting the average American’s financial landscape.
The underlying theory behind the Federal Reserve’s strategy is to curtail demand by making it more challenging for Americans to make purchases, thereby driving prices down. However, the latest inflation report unveils a stark reality – despite the Fed’s efforts, inflation persists above the target of 2%, leaving investors wary of the economic trajectory under the Biden administration.
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