The Biden regime is once again getting wrecked by the latest economic data from the Bureau of Labor Statistics.
Defying economists’ predictions, Biden’s fiscal policies are producing harrowing effects to the U.S. economy.
Inflation, as measured by producer wholesale prices, ticked down to a still-smoldering 10.8% for the year ending in May, according to a report Tuesday from the Bureau of Labor Statistics, near the highest on record.
Tuesday’s news signals more pain to come for households. The producer price index gauges the wholesale prices of goods, which are eventually passed down to consumers.
The report comes just days after a report for the month of May found that consumer prices increased a bruising 8.6% on the year — the fastest annual rate in four decades. The high rate of inflation has damaged Joe Biden politically and undercut support for his spending proposals.
“Prices this high signal a supply and demand imbalance,” Consumer Brands Association CEO Geoff Freeman said.
“[Consumer packaged goods] companies are asking not only how much critical commodities will cost, but if they can find them at all.”
In order to drive down inflation, the Federal Reserve has begun hiking interest rates. The central bank announced in March that it would raise its interest rate target by a quarter of a percentage point and then hiked rates by half a percentage point last month.
The Fed is meeting this week to decide how much to raise interest rates in June. Prior to Friday’s consumer price index report, it was a near certainty that the central bank would conduct another hike of 50 basis points, but after the bad report, investors now see a significant possibility that the Federal Open Market Committee conducts a 75 basis point hike — an aggressive tack that hasn’t been taken since 1994.
The S&P 500 fell into a bear market on Monday, an indication that investors are worried about the economy’s future as interest rates rise. The S&P 500 fell nearly 3.9% at close, while the Dow Jones Industrial Average lost more than 875 points and the Nasdaq composite shed about 4.7% of its value.
A survey, conducted by the Financial Times in partnership with the University of Chicago’s Booth School of Business and released on Monday, found that 68% of the leading academic economists surveyed believe the most likely timing of a recession will be sometime next year.
America’s wallets are emptying at record speed yet the Biden White House continues to congratulate itself on a job well done.
Author: Ann Taylor