U.S. Federal Reserve officials may debate a historic one percentage-point rate hike this month following yet another dismal report of increasingly rampant U.S. inflation.
Catarina Saraiva, Steve Matthews, and Jonnelle Marte for Bloomberg News:
“Everything is in play,” Atlanta Fed President Raphael Bostic told reporters in St. Petersburg, Florida, on Wednesday after US consumer prices rose a faster-than-forecast 9.1% in the year through June. Asked if that included raising rates by a full percentage point, he replied, “it would mean everything.
Investors bet that the Fed is more likely than not to raise interest rates by 100 basis points when it meets July 26-27, which would be the largest increase since the Fed started directly using overnight interest rates to conduct monetary policy in the early 1990s.
Cleveland Fed President Loretta Mester, speaking Wednesday evening in an interview on Bloomberg Television, declined to say if she favored going bigger at the July meeting, noting there were important data releases between now and then. But she said there was “no reason” for raising rates by less than the 75 basis points that policy makers delivered last month.
“What I take from the report, and it was uniformly bad — there was no good news in that report at all — is that inflation remains at an unacceptably high level,” she said. “We at the Fed have to be very deliberate and intentional about continuing on this path of raising our interest rate until we get and see convincing evidence that inflation has turned a corner.”
San Francisco Fed chief Mary Daly, speaking in a separate interview with the New York Times late Wednesday, said that “My most likely posture is 0.75, because of the data I’ve seen,” adding that she had expected the CPI number to be high: “I saw that data and thought: This isn’t good news.”
MacDailyNews Take: Again, as we wrote earlier this week: For new generations, sometimes tough lessons have to be retaught and learned the hard way.
As we go through this, remember: It’s always darkest before the dawn.
‘Tis best to get a handle on inflation, if you know how, while you still can. – MacDailyNews, May 11, 2021
Stop the misguided crusade against domestic energy production and profligate federal spending and inflation will be stopped dead in its tracks. It’s not difficult. – MacDailyNews, May 11, 2022
In January, Interactive Brokers founder Thomas Peterffy said, “Inflation is 7% — 1% or 2% [in interest rate hikes] doesn’t mean anything. If they really wanted to stop inflation, they would have to raise rates to 4%, 5%, 6%.”
Inflation is repudiation. — Calvin Coolidge
When a business or an individual spends more than it makes, it goes bankrupt. When government does it, it sends you the bill… [which] comes in two ways: higher taxes and inflation. Make no mistake about it, inflation is a tax and not by accident. — Ronald Reagan
Please help support MacDailyNews. Click or tap here to support our independent tech blog. Thank you!
Shop The Apple Store at Amazon.
You’re well-done… uh… watermelon… uh… wha?
Yes, it seems that U.S. Presidential Elections purchased by Mark Zuckerberg have consequences.
Some major Carteresque pain is required at first, to teach younger voters a valuable lesson, but, when Democrats are finally, rightfully cast into the wilderness for a decade or more, we’ll be able to enjoy the sequel to the The Reagan Revolution!
Can’t wait to Make America Great Again starting this November!
You conveniently forget that the Fed is independent from the executive branch, and the chairman remains the same as the one your orange hero had.
Stop embarrassing yourself already.
You, Mr. Troll, are in denial that the Treasury and the Fed acted in unison that orchestrated recent spending not seen since 1940’s.
Prior to that, “independent” was the Fed, only in ideal only. Besides that, who the f needs an independent org that’s devalued the dollar over 90% since the Fed’s inception in 1913?
My reco: stop embarrassing yourself already
Unfortunately, you have been bamboozled by the orange monkey! Does not matter how many times you say it, it is simply not true!
BS, No matter how many times you tell yourself that you are not a fucking idiot, it is simply not true
Here is something you might like:
c.tenor.com/IeZ012RMG5wAAAAC/trump-prison.gif
Only a matter of time now
BS, you have delusions of adequacy
@ “Ben”/firstfuck:
You claim independent agencies “acted in unison”. Got any evidence for your conspiracy theory? Of course not.
You claim spending not seen since the 1940’s. Again without reference or context. You apparently don’t know what branch of government authorizes the budget. And you stay conspicuously silent when every single republican in the last century has ballooned the debt to new records … but on foreign war and nationbuilding adventures, not health education and infrastructure for Americans.
Your made-up dollar valuation statistic proves you have no understanding of economics, why inflation occurs, or any real facts to back up your absurd beliefs.
If you hate the Fed so much, try moving to a country that does a better job managing its currency. Let us all know how life is in Zurich.
Until then, STFU about things you don’t understand, and don’t waste your time sullying what could be a useful computer blog again.
“ STFU about things you don’t understand”
Take your own advise. If you did you would be silent
Says Becky, the brainless yappy lapdog for firstfuck the hypocrite Apple hater and wannabe political hack.
Isn’t there a Bowtie Carlson fansite you should be trolling?
Fucktard Becky now hasn’t even got lyin’ Fucker Carlson to watch. Where on earth will she get her ideas?
The Fed is late, for sure. But, the Fed didn’t declare war on domestic energy production. America was a net oil exporter for the first time in 75 years under the last duly-elected president.
No, the Zuckerberg-installed oval office puppet’s puppeteers lack a real religion and have therefore tried vainly to fill their empty souls with the false god of Gaia. Hence the “war on oil,” even though their electric car panacea causes more pollution at more cost. Now, to be fair, they only do this because they are idiots.
They also lack a basic Economics 101 education, (having all majored in women’s studies, of course; they’re geniuses at pronouns), so they’ve pumped the economy with printed money, fueling inflation not seen since the dark days of The Peanut Farmer (now, miraculously, America’s second-worst president).
These puppeteers, and their blank-eyed wooden-headed puppet, are responsible for out-of-control inflation that will cast the cheating, drop box-stuffing Democrat party into the wilderness for well over a decade starting this November.
Now, you enjoy the Second Reagan Revolution when it arrives, ya hear?
Trump 2024. DeSantis 2028 and 2032.
US still imported 7.9 millions bpd 2020. Crude and petrol products.
Less than Obama (10 mil), but nowhere near true energy independence.
As long as Americans choose to drive 6000 pound gas guzzlers to transport their 275 pound asses around, the USA will never be off its oil addiction.
Every president in living memory has crawled to non-democratic Saudi Arabia to beg for more oil. Some of us witnessed how quickly the US ground to a halt in the 1970s OPEC embargo. This is the Achilles Heel for the USA and every foreign leader knows it. They could easily turn off the spigot again, and you will see exactly how self sufficient the obese American is today. Russia took only 10% of global oil production off the market this year and the usual political trolls on this site have been screaming bloody murder. Imagine what they would do if a real global crisis hit the USA directly.
“It isn’t so much that liberals are ignorant. It’s just that they know so many things that aren’t so.”
― Ronald Reagan
That was decades ago, it’s far, far worse now. Libturds are not ignorant, they are now delusional, gullible and dumb as shit
As sure as Napoleon won at Waterloo!
What the hell are you even talking about?
You need to be “this” tall to be on this ride. It’s not complicated, yet you can’t keep up.
America has ignored its massive mental illness problems far too long as it has brought the country to edge of destruction.
It is long past time to institutionalize liberals for their own safety and the good of the country.
Define “edge of destruction”. And while you ponder your hyperbole, tell us all why you advocate denying the majority of your fellow citizens their Constitutional rights.
You sound like a maga bobblehead chanting’lockerrup’ when you haven’t found a lawyer capable of piecing together any case against your shadow villain. All you got is hate, loser. You got played by the most notorious NYC con man.
Hey First Then, the election was not stolen – you need to read this report by notable conservatives.
The report states: “There is absolutely no evidence of fraud in the 2020 Presidential Election on the magnitude necessary to shift the result in any state, let alone the nation as a whole. In fact, there was no fraud that changed the outcome in even a single precinct,” – see link below for more details.
https://lostnotstolen.org
Only a fucking stupid libturd would believe that
Only a dumbass republitard would dismiss information without assessing it and checking its sources. Come on firstfuck, where’s that snappy tweet reference from the social network you claim is all full of misinfo and bots?
Why not – it was written by prominent CONSERVATIVES?! THINK but you are likely too far down the CULT road!
Sorry country Joe, but illegally bypassing state legislatures to thwart election laws resulted in massive fraud. Those modifications in favor of loosening our election laws drastically was
paramount to fraud.
Just like ignoring immigration laws allows millions to cross the border illegally.
Rudy, you lost it a long time ago. Stop using the word “illegal” when you clearly don’t have any knowledge of voting laws.
Mary Daly? Mary Daly the woke San Francisco FED executive? The woman who can’t make a speech on economics without inserting every woke buzzword she can?
Maybe it’s time for her to read:
HOW SAN FRANCISCO BECAME A FAILED CITY
https://www.theatlantic.com/ideas/archive/2022/06/how-san-francisco-became-failed-city/661199/
“…There is a sense that, on everything from housing to schools, San Francisco has lost the plot—that progressive leaders here have been LARPing left-wing values instead of working to create a livable city. And many San Franciscans have had enough…”
Not just San Francisco…
Your personal attack on Daly doesn’t change the fact that she’s an economist, not responsible for running the city of San Francisco. She’s also more successful than whiners like you will ever be. If you hate San Francisco so much, then move.
Stolen Elections have Consequences.
Here’s and idea. Stop printing money and giving it away to everyone outside the US!
Who burned $10 Trillion and counting in Iraq and Afghanistan?
Who couldn’t remember his foreign adventures with the Iran Contra affair? Then followed it up with new deficits on wasteful spending on pipedream Star Wars programs?
Who felt that sending US troops to defend Kuwait oil wells was a good use of taxpayer money, then cut and ran when it was clear there was no strategy to deal with the mid east power vacuum?
Which US leader sent soldiers into Nigeria in an undeclared war, again protecting oil infrastructure?
Which administrations give Israel, Saudi Arabia, and several non democratic oil-rich nations weapons at US taxpayers expense?
Are you seeing a trend? Your addiction to oil is the biggest threat to US peace and prosperity by far. Just look what happens when the oil lobby-financed GOP gets its hands on your money.
Are you trying to look like a complete moron? Where in my post did I say Dems are the only to blame? Can’t find where I said that? Because I didn’t. Both major parties have more than enough blame. However, the current administration and current congress gets the blame for what’s happening now. And before you say that’s unfair, I don’t care if that’s what you think. They’re the ones in power currently. They get the current blame. Simple as that.
So what you’re saying is that if the lead pitcher plays poorly and puts a baseball team down a dozen runs before the relief pitcher steps up, and in the end your team loses, then it’s all the fault of the relief pitcher?
Most people should be smarter than that. But then, baseball fans tend to know statistics while the political troll running this site merely posts attacks for his loser team.
What I’m saying is stop blaming the last guy or group. First few months, fine. It’s been a year and a half. The current situation isn’t anyones fault except the current administration and the current congress. Ever heard of the buck stops here? Both parties do a great job of blaming everyone but themselves. Claim all victories and pass blame on all failures. That’s politics and people as a whole are sick of it.
A misinformed and uneducated public is one of the great dangers the founding fathers feared. Thank you for the reminder. Now if you would please, go to your public library and check out a book or two on civics and may be one on economics.
And to whom are you replying, genius?
I like people who know how to use a simple “Reply” link.
Bejamin Lee, you are precisely correct and ignorance on the basics of economics/currency is one of our biggest problems. Average person says “free 1.500 stimulus check! yes! Give it to me!” (or free gas cards or whatever). Federal government then prints the currency needed to pay these free checks. The effect on currency is to devalue it. Currency has to work that way. So after free checks, now food and fuel and housing and many basics begin costing more. Economic education, the “free” check was in real terms actually a loan. And the payback rate, through inflation/higher prices, is at loan shark interest rates.
Personal debt and public debt are two very different economic markets.
Nobody borrows money at a lower rate than the US government. This is a luxury that Americans have completely taken for granted since WW2.
If consumers are stupid enough to pile on personal debt at insane usury interest rates, the US provides them the freedom to be dumbasses. Thanks to corporate outsourcing, US wages were stagnant since the 1960s and the lazy American filled his insatiable consumer lifestyle with credit cards and Chinese plastic junk. Then we wonder why America doesn’t look so great anymore. It’s because Americans don’t work hard and invest in domestic improvements. The bitter mititaristic xenophobe party of trump didn’t provide any answers but they did add to the public debt in classic tradition, while making it impossible to compromise to get anything done.
Financing the US isn’t the problem. Stopping the downward spiral of proud ignorance, laziness, and dishonesty coming out in obstructionism and extreme political vitriol is the big challenge.
“Never argue with a fool, onlookers may not be able to tell the difference” – Mark Twain
In addition to the rate hike can the Fed please escort Biden his wife and his whole party out of this country is liberals are nauseating
The US federal debt is around 31 trillion dollars. This does not include future obligations that would likely explode that number by two to three hundred percent. As it stands now, Social Security, Medicare, Defense, Interest on the debt takes up nearly all of the US federal government income (say about 3 Trillion dollars). The extremely numerous other agencies the US federal government operates are all funded through debt spending. Every announcement on TV from federal government saying money for this program or money for that country, that is entirely debt spending. How this debt is financed is through the US government issuing bonds/notes/T-bills. A bank, country to someone buys one of these…meaning hey are lending the government money but will be paid back plus interest (and change in secondary market face value but that is more complicated). There is no tangible way, except one, the US federal government can pay this money back without a very significant cut in spending. Any serious cutting of spending is not going to happen (people are for cutting spending provided it isn’t what they receive…meaning nothing will be cut). But there is one other thing they can do, devalue the debt. This is the byproduct of inflation. How does the US federal government continue to debt spend? They do it by buying its own bonds/notes/T-bills. Like an owner of cattle auctioning them for sale, the owner buys what he is selling. So how does the US government get the money to buy its own borrowing of money? By printing the US dollars needed to buy the bonds/notes/T-bills. As the money is printed to buy these, the effect is devaluing the money….aka you and I pay it through higher prices for everything. No, your income will not grow with the higher cost of everything. it can’t. If it did there is no effect on devaluing the debt.
It used to be a BFD to be a “millionaire!”. Devaluing the US dollar means most people will be a millionaire! But a new reasonable economic car will cost 100,000 dollars. Most people don’t have an idea how the US currency works. The above explanation is not all encompassing but just reading that means you now have the basis for how it works.
The cost of energy is a top driver of inflation. As the cost of energy goes up it increase the cost of research, development, manufacturing, labor, transportation to market, cost of labor and at the same time lower buying power of the consumer and customers to buy such products.
Crude oil is not only used in the manufacturing of fuel, but Petroleum is used in manufacturing of plastics, paints, carpet, rubber, cosmetics, medicines, electric parts, heating oil, jet fuel, petrochemical feedstocks, waxes, lubricating oils, asphalt. Football helmets, toothbrushes, candles, Heart Valves, Crayons, Parachutes, Telephones, Enamel, Pillows, Dishes, Cameras, Anesthetics, Artificial Turf, Artificial limbs, Bandages, Dentures, Hair Curlers, Cold cream, Movie film, Soft Contact lenses, Drinking Cups, Fan Belts Car, Enamel, Shaving Cream, Ammonia, Refrigerators, Golf Balls, Toothpaste… just to name a few things made with petroleum
The modern EV is loaded with petroleum based products, and its a close tie to the long term damage that current EV batteries do to the environment by the mining rare earth minerals by evil nations. Google the CCP slave trade on cobalt mining,… the gas based car is much more ethnically pure then the slave labor EV batteries in EV cars.
Basically a war on oil is a war on life. Instead of getting ride of oil we need to focus on extracting and using oil in a more efficient and cleaner way with technology and regulations here at home. But now because of Ignorance and arrogance we are begging for the Middle East to increase output of dirty extraction as we shut down USA based cleaner extraction and move away from energy independence and empower Russia, China and the Middle East by returning to there oil. You guys are hoodwinked thinking your saving the planets but in truth your lining the pockets of slave traders that don’t give a rats ass about a green agenda.
Biden’ s big plan is a war on oil and transition to EV by 2035>…China is licking its lips as they create more coal based power plants and build up there military…
In other words, oil is too precious a resource for us to waste it in gas guzzling luxury social image trucks.
China is going to do what it’s going to do. If you hate them so much, stop buying their junk and selling them dirty coal.