pjmedia.com It was a nice dream while it lasted, the hope that the Fed might cut rates a half-point this month, bringing down interest rates on cars, homes, and credit cards — and maybe even bringing some private-sector job growth back to the economy.
Alas. That no longer looks so likely.
The Bureau of Labor Statistics (BLS) reported early Wednesday that the core consumer price index (CPI) — excluding more volatile food and energy costs — increased 0.3% from July. That’s the most in four months and up 3.2% from a year ago. Housing costs, which include mortgages and rents, were “the main factor” in July’s increase, according to BLS.
Housing costs are always a lagging economic indicator since mortgage rates generally change slowly and homes (or apartment moves) aren’t exactly everyday purchases. What those costs indicate with today’s news is that Bidenflation isn’t done with us yet.
When July’s inflation report came out in early August slightly under expectations, that gave Wall Street — and everybody else — hope that there might be a half-point rate cut. With this August report, we might consider ourselves lucky to get a quarter-point worth of relief.
…
Read Full Article Here…(pjmedia.com)
Home | Caravan to Midnight (zutalk.com)
Live Stream + Chat (zutalk.com)
