Rents and other housing prices are emerging as a significant driver of total consumer inflation, keeping it high even as many additional drivers of inflation begin to decline
Treasury Secretary Tour A Slap in the Face to Struggling Americans
Yellen’s speech took place Thursday at a Ford Motor Co. plant in Dearborn, Mich., where electric cars are manufactured. The economy is slowing down because the Federal Reserve is raising interest rates to fight the highest inflation in four decades.
Coming Soon Higher Interest Rates
Following Chairman Jerome Powell’s public pledge to reduce inflation even if unemployment increases, the Federal Reserve appears on track to raise interest rates by another 0.75 percentage point this month.
Student Loan Forgiveness Adds to Inflation Woes
The White House’s action is completely at odds with its talk of deficit reduction, MacGuineas said. By forgiving billions in student loans, the nation’s deficit will increase twice as much – it reached $2.8 trillion in the fiscal year 2021, the second-highest in history – undoing the $300 billion Democratic plans for deficit reduction. She added that the president undid a year’s worth of work on the fiscal front with a pen stroke.