Staff Reports
The recent inflation report might as well have been a giant red flag waving in the face of the Biden administration, showcasing their failed economic policies. December’s numbers indicate that inflation is holding steady at a whopping 2.6% annual rate, which is no surprise given the chaotic nature of their economic agenda.
It’s clear that the Federal Reserve’s attempts to lower inflation have been fruitless, as prices continue to soar, leaving American families to bear the burden of this financial nightmare.
Inflation (as measured by the Fed's preferred tool, the Personal Consumption Expenditures index) held steady at 2.6% in December.
Meanwhile, core inflation fell to 2.9% — its first month below 3% since March 2021. pic.twitter.com/GcFpuWse2I
— Steven Rattner (@SteveRattner) January 26, 2024
Although there are glimmers of hope with a slight decline in core PCE inflation, it’s nothing to celebrate as it still sits at a troubling 2.9% year-over-year rate. Alarmingly, this surpasses the Fed’s 2% annual price growth goal, leaving little room for optimism.
The situation worsens when considering the 0.2 percentage point increase in prices for December, following a slight decline the previous month. These numbers demonstrate the ongoing struggle faced by hardworking Americans as they grapple with the relentless pressure of rising costs.
To add insult to injury, other inflation indicators paint a similarly bleak picture. The consumer price index has surged to 3.4% for the year ending in December 2023, surpassing economists’ predictions and creating further economic turmoil. Furthermore, the producer price index, a gauge of wholesale inflation, has also seen an increase, reaching 1% from the previous month.
Despite these glaring warning signs, the Federal Reserve is now considering a shift in strategy, with potential rate cuts on the horizon. It’s a desperate attempt to rectify the damage caused by their misguided policies, but the damage has already been done. The Fed’s indecision, coupled with the administration’s incompetence, has left the economy in disarray.
Amidst this economic turmoil, the only silver lining seems to be the solid performance of other sectors of the economy. Despite over a year of higher interest rates, the gross domestic product managed to grow at a 3.3% annual rate in the fourth quarter of 2023. Additionally, the economy added 216,000 jobs in December, holding the unemployment rate at 3.7%, a modest achievement in an otherwise turbulent economic landscape.
The overarching message is clear: the Biden administration’s economic policies have failed the American people, and it’s time for a change. As inflation continues to wreak havoc on the livelihoods of hardworking individuals, it’s evident that a major shift in economic stewardship is imperative for the well-being of the nation.
