Inflation keeps rising because consumer prices KEEP rising….
Business’s haven’t stopped charging people MORE….
The Fed’s interst raises are just beating up home sales…
Causing other countries economic problems also….
The pandemic and other factors are beyond the Fed’s control or help….
A Recession is brewing….
The Federal Reserve’s preferred inflation gauge remained elevated in new data released on Friday, further evidence that the central bank is contending with a stubborn problem as it tries to choke off the worst inflation in four decades.
The Personal Consumption Expenditures inflation measure, which is produced by the Commerce Department and is the measure the Fed officially targets as it tries to achieve 2 percent annual inflation, climbed by 6.2 percent in the year through August. While that was a slowdown from 6.4 percent in July, it was higher than the 6 percent economists in a Bloomberg survey had expected.
The details of the report were even more concerning. While price increases have been moderating somewhat on an overall basis, that is partly because gas prices have been declining. After stripping out volatile food and fuel prices to get a sense of underlying inflationary pressures, the index climbed 4.9 percent in the year through August, an acceleration from 4.7 percent the month before. And on a monthly basis, the core index picked up by 0.6 percent, a rapid pace of increase that was the fastest since June.
The data underlined what a rocky road the Fed faces as it tries to guide the U.S. economy toward slower inflation. Consumers continued to spend in August, the report also showed, suggesting that the economy still has momentum even as central bankers raise interest rates to try to cool demand, slow hiring and eventually weigh down inflation. Because growth has been resilient, the Fed has become steadily more aggressive in its efforts to constrain spending and temper inflation.
“Inflation is very high in the United States and abroad, and the risk of additional inflationary shocks cannot be ruled out,” Lael Brainard, the Fed’s vice chair, said in a speech on Friday. She later added that “we are committed to avoiding pulling back prematurely.”….