In a rare confluence, the US grapples with a paradox: record-low unemployment alongside dismal presidential approval ratings. Skepticism abounds; are the polls flawed or is economic optimism a facade? The reality, it seems, is murkier than meets the eye.
“Service sector inflation is strong,” observes one commentator, highlighting a fundamental flaw in measuring employment through unemployment entitlements. With gig jobs offering more financial viability than traditional employment avenues, the true economic landscape emerges: survival necessitates juggling multiple jobs.
Even if inflation were tamed to the elusive 2%, the cost of living remains prohibitively high for most Americans. As prices soar, exacerbated by government spending, the average household bears a staggering burden. Inflation’s grip tightens, leaving families grappling with the escalating costs of essentials.
Recent data paints a bleak picture. Housing and gasoline costs surge, driving inflationary pressures. Food prices follow suit, escalating the financial strain on already stretched budgets. As the Fed grapples with mounting inflation, consumers continue to outspend their incomes, dipping into savings to sustain consumption.
Amidst this economic turmoil, the Fed faces a daunting task. Inflation remains stubbornly above the 2% target, while economic growth slows. With sticky inflation and precarious spending patterns, rate cuts seem unlikely, leaving the Fed in a bind.
As the nation navigates these turbulent economic waters, one thing is clear: the road ahead is fraught with uncertainty, and tough decisions lie ahead for policymakers.
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“Pockets of weakness” pic.twitter.com/XW7sfJN0Cj
— Barbarian Capital (@BarbarianCap) April 26, 2024
And you wonder why society is so angry
Even if you get inflation to the targeted 2% the cost of living has just become too much for most Americans.
If you don’t get it to 2% due to the stickiness of inflation and give up at 3% it becomes even more painful. pic.twitter.com/XvM2pIf8dP
— QE Infinity (@StealthQE4) April 27, 2024
www.foxbusiness.com/economy/high-inflation-costing-americans-extra-1k-month
finance.yahoo.com/news/data-far-showing-inflation-isnt-225901316.html
On a 3-month annualized basis, Supercore inflation jumped to a whopping 5.5% in March, its highest since December 2022.
Core services less housing inflation is a key metric that the Fed follows, also known as Supercore inflation.
On a 3-month annualized rate it is rising now at… pic.twitter.com/rQ7z9rOLX1
— The Kobeissi Letter (@KobeissiLetter) April 27, 2024