The Fed at its meeting last month raised its benchmark interest rate to a range between 3% and 3.25%. Officials penciled in additional, cumulative rate increases of 1.25 percentage points this year.
To meet those projections, officials could raise rates by 0.75 percentage point at their meeting next month and by 0.5 point at their gathering in December…
A slowdown in housing costs may not feed through to broader measures of price inflation for several months because of how those costs are measured. But Fed governor Christopher Waller Waller said he thought it was possible that inflation excluding food, energy and shelter could slow because of the impact of the Fed’s rate increases so far this year. … [end quote]
The Fed used to exclude “volatile” food and energy prices from their calculation of inflation. Now are they also excluding shelter prices which have risen so fast? Sorry, folks, that’s bogus! Everyone needs food, energy and shelter.
The “sticky” inflation rate is still rising.
So is the median CPI.
Inflation has legs. It has not stopped running and chipping away at the fastest contributors to inflation won’t lessen the real pain to consumers.
Exactly. If central banks stop tightening, we’re going to have some pretty nasty inflation. If they continue raising interest rates, we risk recession. But the inflation is almost certain given the former, while recession is only a risk of the latter.
I’m not smart enough to opine on the world economy. I only know the US numbers. And in the US, I agree with the Fed’s actions. There are more jobs than people willing to fill them. So there is room to slow the economy - perhaps even going into recession - without causing high unemployment.
Better data on just the top earners ( note 91% was the highest rate):
However, despite these high marginal rates, the top 1 percent of taxpayers in the 1950s only paid about 42 percent of their income in taxes. As a result, the tax burden on high-income households today is only slightly lower than what these households faced in the 1950s.