Fed Nips Inflation Bug In Bud, Calls It 4Ever Transitory

Hold on to your wallets says WSJ in “Biden Has an Inflation Problem.” The editors base their cynicism on government numbers showing inflation is continuing instead of abating like the Federal Reserve Board had predicted when Joe’s watch began. What the WSJ could have added is that Swamp bureaucrats who gin up, er compile, these inflation numbers are known to have them appear in, shall we say, a most favorable light.

Yet, the core numbers are the numbers. As the WSJ pointed out, “Real average hourly earnings have declined for SEVEN months” so that the Fed’s much-ballyhooed promise of a “transitory” bout with inflation is a tad inflated at best and “persistent” at worst. In fact, the Labor Dept reported on Wednesday that, for July, “consumer prices rose 5.4% over the last 12 months.”

As usual, smoke & mirrors White House economists are spinning the latest increases in the consumer-price index as “slowing” in July to 0.5% compared to 0.9% in June. Countered the WSJ: “But, the smaller increase was mostly due to used car prices stabilizing somewhat after months of astronomical growth. Inflation rose anyway.” My two cents in agreeing with the editors: A box of my favorite “Nips Parfait” candies, normally priced at $1.49, are now going on Amazon for as much as $5 a pop, although the Fed might point out they were going for $4.95 a pop in June.

Davd Soul