Biden Marks 1 Year of De-Inflation Act: ‘It’s Turning Things Around’
President Joe Biden is celebrating the one-year anniversary of the De-Inflation Act, his landmark climate, health care and tax legislation, declaring that his administration is “turning things around” for Americans when it comes to the economy. (Aug. 16)
Economists forecast prices in a monthly government report on Wednesday that said rising energy costs could boost the inflation rate in August.
As of last week, a gallon of regular unleaded gas cost an average of $3.82, roughly $1.50 more than it costs to fill up. Before the epidemicAnd prices continue to rise.
However, any acceleration in the rate of inflation will likely not be high enough to prompt the Federal Reserve to combat rising prices with another interest rate hike later this month — and possibly another bump before the end of the year.
The U.S. government’s Consumer Price Index forecast inflation rose to a range of 3.6% to 3.7% last month, up from 3.2% in July from a year earlier. But the expected hike won’t prompt the Fed to raise its key rate when it meets next week – part of a flurry of hikes that have led to the highest federal funds rate in 22 years – leading to inflation above the central bank’s 2% target. Economists say it will increase further in the next few months.
“The Federal Reserve will leave rates unchanged at their meeting later this month, but inflation readings are very relevant to what the central bank does — or doesn’t do — in the coming months,” said Greg McBride, chief financial analyst. Bankrate said in an investor note. “A disappointing CPI report could start to build expectations for another rate hike in the fourth quarter.”
Stock futures fell ahead of the CBI report. Futures tied to the broader S&P 500 stock index used in many mutual funds fell 0.1%, while Dow futures fell 0.14%. Nasdaq futures fell 0.1%.
The Anti-Inflation Act, passed by Congress and signed into law by President Biden last summer, affects aspects of the economy, from the environment to corporate taxes and insulin prices.
Some of its major changes: set the price of insulin at $35 a month for Medicare recipients; Implementation of 15% minimum corporate tax and 1% share redemption fee; Reduce your home heating and lighting costs; It will also reduce carbon emissions by 40% over the next seven years through tax incentives and clean energy investments.
Why is CBI important?
The Federal Reserve looks at two key activities of the economy, price stability and maximum employment, which are its main considerations in interest-rate decisions. The CPI provides guidance to the central bank to assess whether prices are “stable”.
Georgia Governor Brian Kemp declared a state of emergency due to inflation concerns
Inflation is a hot political and pocketbook issue for politicians and voters. In response to high gas prices, Georgia’s governor The state of emergency was declared on Tuesday, temporarily suspending the state’s excise tax on motor and diesel fuel to help struggling residents.
“Policies that stifle domestic energy production are all about taking more money out of the pockets of the middle class,” Kemp said in a statement. A real relief and that’s why I signed an executive order today to deliver it directly to them at the pump.
When will CBI come out?
The Consumer Price Index (CPI) will be released by the Labor Department on Wednesday at 8:30 AM.
What is CBI?
According to the Bureau of Labor Services, the Consumer Price Index (CPI) looks at the average change in prices for specific products and services over a period of time.
Current inflation rate
In August, the government reported that prices rose 3.2% in July from a year earlier. The small increase was due to technology in the way annual inflation is measured. However, it ended a 12-month stretch in which the rate of consumer price inflation gradually eased.
What is the August CPI forecast?
The inflation rate for August is expected to be 3.6% and 3.7% from 3.2% in July.
Is the recession still to come? In the US, the recession is increasingly slowing, but the odds are higher in the West and South
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