Inflation’s triumph is now assured. It doesn’t matter who’s in the White House next year, ‘25 will be brutal – plan accordingly. t.co/U0XlTCxTb0
— E.J. Antoni, Ph.D. (@RealEJAntoni) May 1, 2024
In January, economists were predicting up to 6 rate cuts in 2024.
After today's FOMC meeting we'll be lucky to get one.
But this comes as no surprise to anyone whose been watching Kalshi's 2024 Rate Cut Market.
It's been updating the deteriorating conditions in real time. pic.twitter.com/xHEi3ynAOQ
— Kalshi (@Kalshi) May 1, 2024
BIDENOMICS: 3 New Data Points Showing The Economy Is A Dumpster Fire
Remember how Biden thought ‘Bidenomics’ was an amazing talking point?
Stagflation
The latest Consumer Price Index data shows inflation is rising, moving further away from the Fed’s 2% target. And economists are forecasting new inflation data due Friday will paint a similar picture. The GDP report gave another preview of what could come.
Included in the report was an update on inflation from the prior quarter, as measured by the Fed’s preferred gauge, the Personal Consumption Expenditures price index. The latest data showed prices ticked up to a 3.4% annualized rate in the first quarter compared to 1.8% in the last quarter of 2023.
Slowing economic growth combined with rising inflation is known as stagflation. It’s among the ugliest terms to central bankers. — CNN
National Debt
The US government’s balance sheet continues to expand at a scorching pace, with more than a quarter of a trillion dollars in debt added in two months.
New data from the Treasury Department’s Debt to the Penny system shows the country’s national debt rose from $34.297 trillion on February 21st to $34.571 trillion on April 24th.
That’s an increase of $273.859 billion in about 60 days.
The record-high US debt level comes as billionaire investor Leon Cooperman warns that the country is inching closer to a financial crisis. — Daily HODL
Bank Losses
JPMorgan Chase says its net charge-offs, which are debts that the bank does not expect to receive, hit $2 billion in the first quarter of this year, reports Reuters.
That’s nearly twice the amount of unrecoverable debt compared to the same quarter last year.
Meanwhile, Bank of America reported $1.5 billion in net charge-offs, a surge from $807 million a year prior.
BofA says those losses stem mainly from credit card debt that will likely never be paid.
“Bank of America is seeing ‘cracks’ in the finances of borrowers with below-prime credit scores whose household spending is affected by higher interest rates and inflation, Chief Financial Officer Alastair Borthwick told analysts on an earnings call… — DailyHODL