Inflation keeps rising and consumers keep getting hurt. No wonder President Biden’s team sent out a media splash asking them to put a smile on that face and hype the economic recovery.
Real wage growth fell to -1.9% YoY in the latest Consumer Price release. As The Fed keeps its massive foot on the monetary gas pedal.
The biggest gains in Consumer Prices were for energy with gasoline rising 58.1% YoY. But almost nothing was spared the rod of government policies.
Core inflation (CPI – energy – food) rose to 4.9% YoY, the highest since 1991.
The Taylor Rule, what The Fed Funds Target rate SHOULD be, rose to 16.94%. Versus the current rate of 0.25%. Its as if The Fed Open Market Committee is watching Tik-Tok instead of the economic numbers.