The normal child tax credit is $2k, so the 3rd stimulus provided a net gain of $1000-1600 per kid. The 1st and 2nd stimulus were flat out checks that had nothing to do with getting your child tax credit paid early.
INFLATION--FED's cutting rates again...
- Thread starter Chop
- Start date
Horn2RunAgain
2,500+ Posts
Inflation is wreaking havoc on the American middle class and 8 out of 10 say they are spending their savings just to get byOnce again, the lower and lower middle classes have seen the highest wage gains and lower class is actually making more money in real dollars.
Things like auto and home insurance have gone up 20-40%. Many other things have as well. However people keep spending - I doubt it lasts much longer. Hourly rate at tire place is $150/h. These places are all filled with folks in their 20’s and 30’s with dubious experience. If you have any skill whatsoever, you will find a job pronto. Seriously the way to fight back is for older folks to work again. We are using retirees at my workplace for the reasons above.Have things like hot dogs and bread really gotten this expensive in the US?
https://www.usnews.com/news/economy...certainty-wariness-over-progress-on-inflation
“Participants cited a number of tentative signs that inflation pressures could be abating,” the minutes said, noting softening in the prices of goods, online merchandise and the fact businesses were raising prices at a smaller pace.
They also acknowledged that there were slower increases in the prices of shelter, along with declines in inflation expectations among consumers.
“Nonetheless, several participants commented that significant disinflationary pressures had yet to become apparent in the prices of core services excluding housing,”
“Although inflation had moderated since the middle of last year, it remained well above the committee's longer-run goal of 2%, and participants remained resolute in their commitment to bring inflation down to the Committee's 2% objective,” according to the minutes.
We could be in for several more quarter-point rate hikes until the Fed is sure inflation is finally kicked.
“Participants cited a number of tentative signs that inflation pressures could be abating,” the minutes said, noting softening in the prices of goods, online merchandise and the fact businesses were raising prices at a smaller pace.
They also acknowledged that there were slower increases in the prices of shelter, along with declines in inflation expectations among consumers.
“Nonetheless, several participants commented that significant disinflationary pressures had yet to become apparent in the prices of core services excluding housing,”
“Although inflation had moderated since the middle of last year, it remained well above the committee's longer-run goal of 2%, and participants remained resolute in their commitment to bring inflation down to the Committee's 2% objective,” according to the minutes.
We could be in for several more quarter-point rate hikes until the Fed is sure inflation is finally kicked.
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High interest rates are here to stay (for a while, at least...)
High Interest Rates Could Be Here For a While, Fed Official Says
It’s Time to Accept That Higher Mortgage Rates Are Here to Stay - NerdWallet
https://thehill.com/homenews/4015397-economists-expect-inflation-interest-rates-to-stay-high-survey/
Interest rates to stay higher for longer - RBC Thought Leadership
Bloomberg - Are you a robot?
High Interest Rates Could Be Here For a While, Fed Official Says
It’s Time to Accept That Higher Mortgage Rates Are Here to Stay - NerdWallet
https://thehill.com/homenews/4015397-economists-expect-inflation-interest-rates-to-stay-high-survey/
Interest rates to stay higher for longer - RBC Thought Leadership
Bloomberg - Are you a robot?
This is what you call a contradiction. If high prices and high interest rates are killing the middle class, how can interest rates stay higher for longer? Err, does not compute, does not compute.
Balance and stability is a key component. Get inflation under control, pause, then slowly inch rates down, while keeping the delicate balance.
Great observation iis. Makes it imperative that we educate the voters on the folly of voting for liberals. One of the greatest truth statements of all time - "There ain't no free lunch!"
That was hard to explain at the grocery store when I got the groceries and the employee gave me cash back.
Fed to decide on rate hike, testing optimism about a 'soft landing' as inflation rises again
"Inflation has ticked up for two consecutive months, reversing some of the progress made in the effort to bring price increases down to normal levels. Meanwhile, oil prices have soared, threatening to push inflation even higher.
On top of that, a strike launched by thousands of autoworkers on Friday risks choking off the supply of cars and elevating prices, further endangering the inflation fight, economists previously told ABC News."
"Inflation has ticked up for two consecutive months, reversing some of the progress made in the effort to bring price increases down to normal levels. Meanwhile, oil prices have soared, threatening to push inflation even higher.
On top of that, a strike launched by thousands of autoworkers on Friday risks choking off the supply of cars and elevating prices, further endangering the inflation fight, economists previously told ABC News."
After 3 years of undergrad and one year of grad school economics, I fully understand why economists throw out food, energy, and any other commodity price in their "inflation" calculations. However, the politicians and the Fed need to pull their collective heads out of their rectums and see the real world before making any type of adjustments.
Of course, that would make more sense, because it would show how people personally feel inflation in their everyday lives. However, they don't want to do that. They'd rather be able to tell people that inflation is the lower figure, because it's more politically advantageous for them.
Monahorns
10,000+ Posts
It started as more nuts and bolts than that even. The CPI calculation adjustments were made to control Social Security and other welfare payment increases since they are tied to CPI. That is the incentive first and foremost.
However, like I said above, there is reason to believe that price inflation is still over estimated because it is a virtually impossible metric to calculate accurately. Gene Epstein shares information about this on Twitter, interviews, and a book he wrote years ago. He uses the Bureau of Labor Statistics data since he used to work for them and it is noted to be more accurate and detailed than what comes out of BEA.
Not sure I buy that completely mostly because of college, health care, and real estate prices, but I found the comments interesting and counterbalancing.
Turkish inflation rises to 61.53% in September, near forecast
Turkey could be about to go under. You can't sustain a 60%+ inflation rate and maintain your government.
Turkey could be about to go under. You can't sustain a 60%+ inflation rate and maintain your government.
Beware of premature celebrations on inflation
"The analysis in our paper finds that inflation is most often persistent, that it is critical not to loosen policies prematurely in response to temporary declines in inflation – meaning interest rates will likely need to remain high for longer – and that while fighting inflation often involves short-term pain, this is likely small in relation to the costs of persistently high inflation."
"The analysis in our paper finds that inflation is most often persistent, that it is critical not to loosen policies prematurely in response to temporary declines in inflation – meaning interest rates will likely need to remain high for longer – and that while fighting inflation often involves short-term pain, this is likely small in relation to the costs of persistently high inflation."
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