Photo by Gage Skidmore

A key metric used to measure the rate of inflation is now showing the highest rate in 39 years.

As The Hill reports:

A measure of prices that is closely tracked by the Federal Reserve rose 5.8 percent last year, the sharpest increase since 1982, as brisk consumer spending collided with snarled supply chains to raise the costs of food, furniture, appliances and other goods.

The report Friday from the Commerce Department also said that consumer spending fell 0.6 percent in December. A wave of omicron cases discouraged many Americans from traveling, eating out or visiting theaters and other entertainment venues. At the same time, incomes rose 0.3 percent last month, providing fuel for future spending.

Stubbornly high inflation has hammered household budgets, wiped out last year’s healthy wage gains and posed a severe political challenge to President Joe Biden and Democrats in Congress. It also led the Federal Reserve to signal Wednesday that it plans to raise interest rates multiple times this year beginning in March to try to get accelerating prices under control.

Chair Jerome Powell also made clear that the Fed will move to shrink its huge $8.9 trillion of bond holdings soon after it starts raising rates, another step that will likely tighten credit, slow spending and potentially weaken the economy.
The reporte signals more bad news for an economy which many experts believe is significantly overheated and likely headed for a significant correction.

 




Comments

  1. The biden stench of failure is proven and still he’s internally destroying U.S. Freedom, Rights, Liberty and National Security with bo’s treasonous illegal 3rd term attempt to be dictator ! A commie dem’s vote fraud is also proven with every E.O. biden spews into bo’s cesspool !

  2. Last night I heard this on a news program, if you wanted to destroy this country what would you be doing differently that what Biden is doing, SO TRUE.

  3. This clown show administration needs to be impeached and Removed from office America Vote out the Nazis AKA the democratic party next election We The People demand our country back from the Nazis

  4. Biden just proves he makes Carter look like an Amazing President. He proves he has no plan other than HURT Americans by undoing President Trump’s good and DESTROY America. He also proved he was CHEATED Iin Office by TRAITORS. That Pedophile and Prostitute team are UNFIT for any Office especially the top two in America.

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