And Fed Chair Powell is adamant that that he could keep raising rates….
He and his crew ARE screwing Consumer’s and President Biden…..
But even retailers with strong sales say there are signs of economic strain among shoppers.
“It is clear that the lower-income shopper, our core customer, is still under significant economic pressure,” Michael O’Sullivan, the chief executive of the off-price retailer Burlington Stores, said in a statement on Thursday. In the three months through July, Burlington’s sales rose 4 percent and its profit more than doubled.
Inflation F.A.Q.
What is inflation? Inflation is a loss of purchasing power over time, meaning your dollar will not go as far tomorrow as it did today. It is typically expressed as the annual change in prices for everyday goods and services such as food, furniture, apparel, transportation and toys.
Discounters historically perform well during times of economic uncertainty as shoppers across the income spectrum look to save money. Burlington, along with Walmart, Dollar Tree and TJX, the owner of T.J. Maxx and Marshalls, all reported a rise in sales last quarter, as shoppers sought discounts on essential items like groceries, turned to cheaper private label products and reined in spending on discretionary goods.
The strong performance at off-price and discount retailers stands in contrast to those at department store chains and many fashion and footwear retailers.
In calls with Wall Street analysts this week, retail executives also flagged rising credit card delinquencies and higher rates of retail theft, ominous signs that consumers could be more strapped for cash.
Jeff Gennette, the chief executive of Macy’s, the largest department store in the United States, said shoppers had “more aggressively pulled back” on spending in the discretionary categories, resulting in an overall decline in sales last quarter. Half of Macy’s shoppers make $75,000 or less….
…
And a new dynamic will soon come into play. In October, student loan payments will resume for about 44 million Americans, after a pandemic relief measure put them on hold in March 2020. Retail executives have warned that the payment resumption could further squeeze their shoppers’ budget…
Explain in detail please how Powell and his “crew” are “screwing “ consumers.( this ought to be good)
Easy Jack……..
Higher INTEREST RATES means higher costs for Homes, Cars, Furniture, Credit Cards, etc….
Jerome has NOT stopped CONSUMERS COSTS from raising……
Simple and to the POINT!
As usual,
You have nothing to say after making one of your silly remarks.
Your understanding of economics is the equivalent of aThird graders knowledge of the intricacies of the latest computer technology.
I understand that HIGHER rates HURT consumer spending which IS what Jerome wants and IS causing AMERICANS to worry about the conomy and NOT be happy….
THAT is reflected in Biden’s poll numbers….
The politics side ain’t good…..
Biden is trying to help himself with student loan forgivness and IRS action while the GOPer’s use Jerome and the IRS against him…..
Yeah Powell wants to hurt consumers and Biden…
What a damn fool you are.
Look ignoramus you’ve been babbling ,on incessantly about high prices,i.e. inflation.
The Fed actions have succeeded in bringing inflation down considerably.Its still too high however and the fight isn’t over.
Will that cause some momentary pain?Yeah so?
What exactly do you think they should do?
Nothing?
You sound just like one of those idiot MAGA clowns.
Come on Bozo,give us your solutions?
Yup….
As I POINT OUT…..
Americans ain’t HAPPY……
THAT hurts THEM and Biden……
I guess U LOVE PAYING MORE Money everyday, eH?
U REALLY do NOT get it????
Higher Consumer Prices!
Don’t run for office Jack…..
Keep making Money…..
Lot of people ain’t as smart as U…….And Happy with this economy
Same garbage you hear from theMAGA idiots….
No solution.
Nothing!
Yeah dumb dumb everybody loves high prices!
And this whole thing is Powell’s fault !
Yeah goofball a lot of people are just as dumb as you!
Always got to have someone to hate right MAGA!
Love Ya Jackk!
The Humphrey-Hawkins Act of yea so many years past (HHH died in the 1970’s) changed the Fed’s mission to balancing both inflation and employment. Everyone feared the Pandemic would lead to depression, but low interest rates plus massive spending by the Federal government prevented that.
Since then (and I’m just repeating Conventional Wisdom), the Fed and the Treasury (headed by Powell’s predecessor as chair of the Fed, Janet Yellen) have tried to thread a needle between crushing the job market and starting a hyperinflation/stagflation that we last saw in the 1970’s — remember Gerald Ford’s “WIN/Whip Inflation Now” buttons?
So far, neither has happened, but if the Fed keeps raising rates too far or too fast, the price of stopping inflation might be the great slump that we all fear.
And there are contradictions: prices are rising but (in the tight employment market) rising faster, which theoretically equals a rise in real income.
Similarly, rising mortgage rates (based on the Fed’s Prime Rate) ease pressure on the housing market, at the expense of making housing even less affordable and construction projects less feasible for developers.
Amen DSD…..
Jack,
I am usually critical of James too, but in this case his point was really just reiterating what the article focused on…Inflation (caused by all free money doled out during the pandemic, supply chain issues, pent up demand, etc) hurt consumers, in order to combat that Powell and his crew started aggressively raising interest rates to bring down inflation (cut consumer spending and bring down economic activity (almost or to a recessionary point)). By doing this, this politically hurts Biden, it isn’t Powel and his crew’s intention to screw Biden and the Average American struggling with higher prices and higher interest rates…but the reality is that it does screw us…I am looking to buy a new car this year with my new contract…and the costs of cars are crazy high still and then you look at the interest rates and they are crazy high too…that limits what type of car I can get…was looking at the 2023 plug in Prius, but now I am looking at a used certified Plug in Prius (not as nice as the new ones) but cost wise that’s what I can swing…If rates weren’t high and costs didn’t go up as much…I would have been purchasing the 2023…
And to make an analogy…Biden is the Quarterback of the US Economy…when it is going good you get all the credit for the win, and when it is hurting, you get all the blame…comes with the territory though we all know there are a hundred different factors causing economic boom or bust and the President has little to do with it…
Indeed BDog…..
A Depression IS NOT the solution to controlling the economy…..
Rising the interest rate’s IS hurting the Middele Class….We carry the economy….
BTW?
The Labor Dept economic figure’s , CPI, does NOT include Food prices and Gas prices ….
Duh?
There are (duh) two Consumer Price Indices issued by the Commerce Department: one includes everything (including the volatile gas & groceries), and the other one doesn’t.
Thanks for the correction DSD….
They always quote the one W/O the two which shows what the Feds want us to see….