The democratic party for decades was successful in convincing Americans that they were the party fighting for the middle class, the party for minorities.
But, as far-left radicals have highjacked the party, the effect on the U.S. culture is waking up millions of voters to the reality that Democrats are still the party of Jim Crow, and big union bosses.
The situation for hard-working Americans is further worsening, as the left, which is in control of every major governmental institution, is intentionally trying to destroy the fossil fuel industry and force the globalists’ policies advanced by The Great Reset.
Inflation when out of control, is in effect a tax increase on all Americans, including the poor. As a result of the Biden administration policies; food, gasoline, housing, transportation, and utility costs are skyrocketing.
New data is out, confirming the huge increase in the price of gasoline in June, which hit new all-time highs several times during the month, is killing households’ budgets and businesses are passing on the increased wholesale costs to the consumers.
Inflation in the United States, already at 40 year highs, rose to an annual rate of 9.1 percent in June, the Department of Labor said Wednesday. This is the highest rate since 1981.
Compared with a month earlier, the Bureau of Labor Statistics’ Consumer Price Index was up 1.3 percent.
Economists had expected CPI to rise at an annual rate of 8.8 percent, up from 8.6 percent in May. They expected a month-over-month increase of 1.1 percent.
This was the 13th straight month of inflation running higher than five percent, meaning this year’s price increases are building on top of the decade’s high increases of last year.
Grocery store prices were up 12.2 percent annually and one percent for the month. Energy prices are up 41.6 percent annually and 7.5 percent since May. Gasoline prices jumped 11.2 percent in June compared with May, for a 59.9 percent year-over-year increase.
Although many economists and anti-Trump journalists claimed President Donald Trump’s tariffs would raise prices, consumer prices remained low throughout his administration. Trump’s tariffs turned out not to be taxed on consumers. Instead, they were absorbed by Chinese producers and exporters and the profit margins of most large U.S. companies.
Inflation which was relatively stagnant under former President Donald J. Trump began to accelerate last March after years in which it typically came in below the Fed’s two percent target.
In order to help out the Biden administration, the Fed incorrectly decided to keep interest rates low in 2021 although the economy was recovering at a faster than expected rate.
In addition, the Fed should have considered the massive amount of spending that the Biden administration was signing off on. For example, the billions of dollars of deficit spending in the American Rescue Plan. These combined to fuel demand for goods and services faster than supplies could expand, pushing up prices.
Federal Reserve chief Jerome Powell, following the advice of many of the economists on the central bank’s staff, initially claimed that inflation was due to transitory factors.
Fed officials forecast that inflation would fall in the latter half of 2021, predicting that supply chains would swiftly unsnarl and a rebalancing of consumer demand from goods to services would relieve pricing pressure.
The Biden administration brought back a former Fed chair to be the Treasury Secretary, Janet Yellen. She continued the admiration’s push for even more spending.
The Federal Reserve finally had to admit that the inflation rise was not transitory after all and went into inflation-fighting mode.
The Fed raised its target rate by 75 basis points in June, the biggest single-meeting hike since 1994. It is expected that it will implement another 75 basis point increase at its July meeting in two weeks.
Following the June CPI report, futures markets implied very strong odds that the Fed would increase rates by 75 basis points in September, as well. Previously, the fed funds futures market had seen a smaller, 50 basis point hike as more likely at that meeting.
The problem with the Fed getting late to the party is that consumers are now pulling out of purchases because of the higher interest rates.
Homebuyers are canceling deals at the highest rate since the start of the pandemic
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