Poor Joe Biden. With apologies to James Taylor, the President really could use a friend. Bad economic news persisted on what should have been a day of celebration – Joe’s Inflation Reductions Act. The White House was celebrating “a win for the middle class,” as Biden called it.
Politico sums up Labor Department’s news.
- The topline finding: “Inflation rose more than expected in August as rising shelter and food costs offset a drop in gas prices,” CNBC’s Jeff Cox writes.
- The overall figures: “The consumer price index, which tracks a broad swath of goods and services, increased 0.1% for the month and 8.3% over the past year. Excluding volatile food and energy costs, CPI rose 0.6% from July and 6.3% from the same month in 2021.”
- The detailed numbers: “Energy prices fell 5% for the month, led by a 10.6% slide in the gasoline index. However, those declines were offset by increases elsewhere. The food index increased 0.8% in August and shelter costs, which make up about one-third of the weighting in the CPI, jumped 0.7% and are up 6.2% from a year ago.”
Joe’s Altered Reality
Can President Biden reassure Americans when rents and grocery bills keep rising? The markets plunged on Biden’s news, sending the stock market into its worst day since June 2020, reports BRIGHT editors:
- The Dow Jones Industrial Average lost nearly 4%.
- The S&P 500 lost over 4%.
- The Nasdaq dropped 5%.
Janet Yellen’s Warning
President Biden “crowed about gasoline prices being down $1.30 a gallon since summer began,” writes Karl Rove in the WSJ.
(Biden) didn’t mention that gasoline is still $1.31 a gallon costlier than when he was inaugurated.
Nor did he say anything about Treasury Secretary Janet Yellen’s warning on Sunday that gasoline prices were at risk of rising again later this year.
Voters Face Day-to-Day Realities
(Voters) know they face high prices at the store and pump. They remember what it cost to clothe their kids for school last year. They know prescription prices still aren’t down. They understand real average hourly wages have fallen each month of the Biden presidency. They’re concerned about the border and rising crime.
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