Bidenomics at Work as Inflation Cools to Just 3%

[Rebound]

Consumer prices rose 3 percent in the year through June.

 

That overall metric catches big declines in gas prices and a few other products that could prove ephemeral, which is why policymakers closely watch a different measure: the change in prices after stripping out food and fuel costs. That measure, known as the core index, offered news that was even better than what economists had expected, sending stocks higher as investors bet that the news would allow the Fed to raise interest rates by less than they otherwise might have.

The core index climbed 4.8 percent compared with the previous year, down from 5.3 percent in the year through May. Economists had forecast a 5 percent increase. And on a monthly basis, the core index climbed at the slowest pace since August 2021.

https://www.nytimes.com/live/2023/07/12/business/cpi-inflation-fed

[CdnFox]

Food and fuel are the two biggest expenses after shelter for most people,

I guess what the dems feel is that if you juggle the numbers enough EVENTUALLY you'll find some that look good for you  

[Rebound]

19 minutes ago, CdnFox said:

Food and fuel are the two biggest expenses after shelter for most people,

I guess what the dems feel is that if you juggle the numbers enough EVENTUALLY you'll find some that look good for you  

Thank you for your support of President Biden:  When you INCLUDE food and energy costs, the inflation rate is BETTER. 

[impartialobserver]

It is comical that someone thinks that a President has complete control over this. The Covid stimulus payments definitely led to some inflation.. how much EXACTLY.. all we can do is approximate. As for now.. it is unlikely that Biden's current actions are doing much to change this number. 

[Rebound]

27 minutes ago, impartialobserver said:

It is comical that someone thinks that a President has complete control over this. The Covid stimulus payments definitely led to some inflation.. how much EXACTLY.. all we can do is approximate. As for now.. it is unlikely that Biden's current actions are doing much to change this number. 

Your observation lacks impartiality.  
 

Firstly, Bidenomics is an array of economic policies and actions which definitely impact the US and World economies.  
 

Second, during the midterm elections, Republicans incessantly attacked the President over the issue of inflation.  Clearly, their attacks were misguided. In the political arena, if Side A makes a criticism, Side B should respond.  And the response is clear: Inflation was a global phenomenon, it was lower in the US than in other nations, and it is now so low as to no longer be an issue.  
 

If Republicans are going to assert that the President has control over inflation, then I assert that this President has done an exceptional job at managing and then reducing inflation.  

[impartialobserver]

20 minutes ago, Rebound said:

Your observation lacks impartiality.  
 

Firstly, Bidenomics is an array of economic policies and actions which definitely impact the US and World economies.  
 

Second, during the midterm elections, Republicans incessantly attacked the President over the issue of inflation.  Clearly, their attacks were misguided. In the political arena, if Side A makes a criticism, Side B should respond.  And the response is clear: Inflation was a global phenomenon, it was lower in the US than in other nations, and it is now so low as to no longer be an issue.  
 

If Republicans are going to assert that the President has control over inflation, then I assert that this President has done an exceptional job at managing and then reducing inflation.  

I know intimately how the CPI is formulated. I do not need links/articles. If we were in a room together.. I could spell out every detail.  It is not as easy as you think it is. The point is that Biden or any president has little to no control over the vast majority of the elements in the CPI. I am somewhat new here but have held the position that in general (covid stimulus being rare and unprecedented).. a president does not control inflation or the economy. Yes, they impact it... but not control it

[robosmith]

28 minutes ago, impartialobserver said:

I know intimately how the CPI is formulated. I do not need links/articles. If we were in a room together.. I could spell out every detail.  It is not as easy as you think it is. The point is that Biden or any president has little to no control over the vast majority of the elements in the CPI. I am somewhat new here but have held the position that in general (covid stimulus being rare and unprecedented).. a president does not control inflation or the economy. Yes, they impact it... but not control it

So would you say that the IMPACT has been good lately?

[impartialobserver]

45 minutes ago, robosmith said:

So would you say that the IMPACT has been good lately?

possibly. It could also be more of an example of random correlation than actual causality. Just because two things happen at the same time.. does not mean that one caused the other. 

[Rebound]

1 hour ago, impartialobserver said:

I know intimately how the CPI is formulated. I do not need links/articles. If we were in a room together.. I could spell out every detail.  It is not as easy as you think it is. The point is that Biden or any president has little to no control over the vast majority of the elements in the CPI. I am somewhat new here but have held the position that in general (covid stimulus being rare and unprecedented).. a president does not control inflation or the economy. Yes, they impact it... but not control it

Obviously, if the President fully controlled the economy, he’d make everyone rich. But the President nonetheless can have a tremendous impact on the economy. 

[WestCanMan]

What inflation? ?

https://www.macrotrends.net/2015/fed-funds-rate-historical-chart

Biden's interest rates:

0.8% to over 5% between Feb 2022 and July 2023. 
"But the inflation (which never really existed) is cooling"

[robosmith]

51 minutes ago, impartialobserver said:

possibly. It could also be more of an example of random correlation than actual causality. Just because two things happen at the same time.. does not mean that one caused the other. 

Well, it's clear that the Fed expected rising interest rates to cool the economy and lower inflation, so it's not "random correlation."

[CdnFox]

3 hours ago, Rebound said:

Thank you for your support of President Biden:  When you INCLUDE food and energy costs, the inflation rate is BETTER. 

Uhhh - Soooo  the figure published by the dems is 3 percent which contains those calculations.  YOU were the one saying the dems should not have used those calculations and should have used ones that are higher.

I think the calculations should be the ones that use three percent but if YOUR argument is accurate then i guess the dems are just going with whatever makes them look good

You... ahh... you didn't think that out all the way did you

Holy shit you're stupid

 

 

 

[impartialobserver]

56 minutes ago, robosmith said:

Well, it's clear that the Fed expected rising interest rates to cool the economy and lower inflation, so it's not "random correlation."

however, the Federal reserve operates independent of the President on a day to day basis. Yes, they appoint the chairman if that time comes but the decisions of the Fed are not controlled by the President. 

[CdnFox]

8 minutes ago, impartialobserver said:

however, the Federal reserve operates independent of the President on a day to day basis.

Technically, but do they tho?

[impartialobserver]

4 minutes ago, CdnFox said:

Technically, but do they tho?

all we can do is go by what they say in public. Its my assumption that you are not privy to behind closed doors meetings and other stuff that give us more insight. I know that I am not. This kind of conspiratorial thinking does not work for me because there is no way to definitively prove/disprove it. 

[CdnFox]

Just now, impartialobserver said:

all we can do is go by what they say in public. Its my assumption that you are not privy to behind closed doors meetings and other stuff that give us more insight. I know that I am not. This kind of conspiratorial thinking does not work for me because there is no way to definitively prove/disprove it. 

I don't know that you can be so absolute. there is a great deal of evidence that the feds influence the reserve and it seems to be generally accepted.

You could argue that we don't know about any very specific instructions not being privy to such discussions but i think it's going too far to discount the idea the presidents do have influence at the fed. And i don't mean just biden or anything.

[impartialobserver]

5 minutes ago, CdnFox said:

I don't know that you can be so absolute. there is a great deal of evidence that the feds influence the reserve and it seems to be generally accepted.

You could argue that we don't know about any very specific instructions not being privy to such discussions but i think it's going too far to discount the idea the presidents do have influence at the fed. And i don't mean just biden or anything.

Then we are starting to argue about degrees of influence. Person X says that we can attribute 20% of the result to President, Person Y says that it is more like 45.4456%, and so on. When they are forced to explain why they chose 45. 4456% and not 44.4457%... the explanation is nothing but biased opinion. The bias coming from their information being 100% based on interpretation of secondary events. Its like how in serious historical research.. it is better to have primary sources than secondary sources. To say that Biden influenced the interest rate hikes is nothing but guessing on our part. 

[reason10]

7 hours ago, Rebound said:

Consumer prices rose 3 percent in the year through June.

 

That overall metric catches big declines in gas prices and a few other products that could prove ephemeral, which is why policymakers closely watch a different measure: the change in prices after stripping out food and fuel costs. That measure, known as the core index, offered news that was even better than what economists had expected, sending stocks higher as investors bet that the news would allow the Fed to raise interest rates by less than they otherwise might have.

The core index climbed 4.8 percent compared with the previous year, down from 5.3 percent in the year through May. Economists had forecast a 5 percent increase. And on a monthly basis, the core index climbed at the slowest pace since August 2021.

https://www.nytimes.com/live/2023/07/12/business/cpi-inflation-fed

1. Anyone who cites the extremist left wing opinion rag the TREASON TIME is an uneducated idi0t.

2.

Everybody knows it.  Biden is the WORST PRESIDENT in the history of America.

[Rebound]

7 minutes ago, reason10 said:

1. Anyone who cites the extremist left wing opinion rag the TREASON TIME is an uneducated idi0t.

2.

Everybody knows it.  Biden is the WORST PRESIDENT in the history of America.

Anyone who cites memes is as big an ldiot as can be. 
The Times article just quoted government statistics. I guess there’s something deep state about it for you  

 

[CdnFox]

1 hour ago, impartialobserver said:

Then we are starting to argue about degrees of influence. Person X says that we can attribute 20% of the result to President, Person Y says that it is more like 45.4456%, and so on. When they are forced to explain why they chose 45. 4456% and not 44.4457%... the explanation is nothing but biased opinion. The bias coming from their information being 100% based on interpretation of secondary events. Its like how in serious historical research.. it is better to have primary sources than secondary sources. To say that Biden influenced the interest rate hikes is nothing but guessing on our part. 

Fair enough

[Rebound]

16 hours ago, impartialobserver said:

Then we are starting to argue about degrees of influence. Person X says that we can attribute 20% of the result to President, Person Y says that it is more like 45.4456%, and so on. When they are forced to explain why they chose 45. 4456% and not 44.4457%... the explanation is nothing but biased opinion. The bias coming from their information being 100% based on interpretation of secondary events. It’s like how in serious historical research.. it is better to have primary sources than secondary sources. To say that Biden influenced the interest rate hikes is nothing but guessing on our part. 

Ordinarily, the Fed and the Treasury Department meet often to discuss fiscal policies and the Fed explains what they want to see in order to make an interest rate correction. Bill Clinton documented this process. 
 

But my point is that increasing interest rates usually slows an economy down. We had such ridiculously low interest rates that it was very dangerous, I think.  The correction was needed.  But we have had those corrections and yet unemployment has been sub-4% for nearly 18 consecutive months; that hasn’t happened since the 1960’s (when we had a draft that employed millions). 

Edited July 13, 2023 by Rebound

[robosmith]

Biden’s Economic Dream Is Becoming Reality

Quote

On Thursday the latest consumer price index numbers revealed inflation cooling to 3% — its lowest rate since March 2021.

"it’s the latest in a string of economic developments that’s bolstered the administration’s confidence it can set the U.S. on a glide path without first plunging it into a downturn," Adam Cancryn reports.

Top Biden advisers are reluctant to be seen as taking a full victory lap. Even as they hit the road touting Bidenomics, they have their eyes to three big potential storms on the horizon: (1) the mass resumption of student loan payments coming this fall; (2) a likely government shutdown later this year; and (3) the possibility that additional interest rate hikes could still push the economy into a downturn. 

[CdnFox]

4 hours ago, robosmith said:

Biden’s Economic Dream Is Becoming Reality

 The inflation RATE is down. 

All that inflation he racked up is still there.  THe prices don't go back to normal, they remain high. So even if it goes to zero until wage growth catches up people are still suffering.

Don't ANY people on the left know how money works?

[robosmith]

7 minutes ago, CdnFox said:

 The inflation RATE is down. 

All that inflation he racked up is still there.  THe prices don't go back to normal, they remain high. So even if it goes to zero until wage growth catches up people are still suffering.

Don't ANY people on the left know how money works?

In reality, many PRICES are DOWN, too. Esp if you know how to shop for them.

For instance, I've been buying eggs for the relatively normal price of $1.25/dozen for weeks at Aldi when most stores are still selling them for $2-3 / dozen, which is still DOWN from the peak prices last year.

Do you know how SHOPPING WORKS? LMAO

[CdnFox]

1 hour ago, robosmith said:

In reality, many PRICES are DOWN, too. Esp if you know how to shop for them.

A particular item may be down at your store - or you may have been OVERpaying for it previously. You know - because you're not that bright

Which would be fine if you only needed to buy one thing, but of course that's not the case. People need to buy all kinds of food, they can't get by on just eggs.

And over all food has been going up. And by a lot.

Sure - sometimes you can find something on sale and a smart shopper looks for deals. I own a few freezers and around here there's certain meats and such that go on for half price every 3 months or so and i stock up.

But - it's STILL more expensive than the best deals you could find a few years ago.  Overall you're paying a lot more.

THere's things you can do - you can eat less, you can sub in cheaper produce or meats, go with frozen veggies instead of fresh, etc.   But at the end of the day you're paying more and getting less than you used to.