What I don't understand: oil prices are up about 15% since December which will ripple throughout the economy; 'core' inflation came in lower but the article I read said inflation that affects consumers came in higher; Fed hesitating to cut rates again. Why even announce 'core' inflation if there is another measure that affects consumers more and consumer spending is roughly 70% of GDP? If the Fed is hesitating to cut rates, it means they believe that inflation may not be tamed. Once the lag on oil prices moves on through the economy, we may see inflation take a significant tick upwards. I believe we need to leave interest rates alone and put DOGE to work immediately as out of control government spending is helping fuel inflation. If Trump follows through and does 'drill, baby, drill', maybe oil prices recede and that pressure is alleviated in the economy. The article below from CBS shows how much pretty ordinary grocery items have increased since 2019 and most are 50% or more. The government's CPI measurement is year-over-year, don't forget. The previous big runup in prices is still intact and 3.2% inflation on today's prices is more than 3.2% over 2019's prices. A little fact most idiots in government forget when talking about inflation (or, in AOC's case, too stupid to realize).
Inflation is proving stickier than expected, which could cause Fed to hit pause button on more interest rate cuts.
www.cbsnews.com