Americans likely to have long memories on inflation

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One month of zero per cent inflation won’t be enough for US households to forget they lost $8656 of their income to inflation as the midterms loom.

“I just want to say a number: zero,” President Joe Biden said after the release of July CPI data on Wednesday. “Today, we received news that our economy had zero per cent inflation in the month of July. Zero per cent.”Biden, whose approval rating is languishing in the 30s, had a spring in his step this week.

Biden knows the buck stops with him, and he is scrambling to control the message with only two more official CPI readings set to be released before November 8.The latest government effort to get prices down is the Inflation Reduction Act, a new $US437 billion bill passed by Congress and focused on climate, taxes and health care. Biden says it is “the most consequential thing that Congress can do to keep our progress on inflation from getting worse ...

The economists include Nobel laureate Vernon Smith, former chairman of the Council of Economic Advisers Kevin Hassett, former director of the Office of Management and Budget Jim Miller, and Robert Heller, president of the Federal Reserve Board from 1986 to 1989.In addition, professors from the University of Chicago, Princeton University, Duke University, the University of Virginia, Columbia University and the University of Notre Dame signed the letter.

“I don’t think many economists think the Inflation Reduction Act will actually reduce inflation. I don’t think it will,” Hansen says. “I expect inflation will not peak this week and we will see it in the mid 9 per cents within six months.” Even if inflation suddenly drops off a cliff from the current 8.5 per cent to a more manageable 5 per cent, the average American will still be losing $US3376 through the invisible tax of inflation.Some members of the public have become a lot more optimistic about inflation expectations. One-year inflation expectations as measured by the New York Fed just experienced their largest monthly drop since records started in 2013. Their views on five-year inflation and 10-year inflation also declined.

 

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Party polling's pretty even. Suspect the recent Trump stuff won't help the GOP, especially if a desperate Trump declares before Nov. Inflation likely to keep low. Plus a few recent legislation wins.

they still had inflation of 8.5%, goods and services didnt get any cheaper!

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