Stubborn Inflation Leaves The Fed, Markets Staring Into Uncertainty
ForbesSep 01, 2023
The Facts
US inflation rose 3.7% in August compared to last year, accelerating for the second consecutive month. In July, year-over-year inflation rose 3.2%, while monthly inflation was up 0.2% compared to 0.6% in August.
The Dept. of Labor’s Consumer Price Index (CPI) — which measures the costs of various goods and services — on Wednesday showed rising energy and gasoline prices, which were the main contributors to the rise in inflation.
The Spin
Establishment-critical narrative
The economy is not working for the working-class American consumer, and the Fed’s interest rate hikes — which slow wage growth and make mortgage rates explode — haven’t done enough to slow inflation. Hardworking Americans and small businesses are being hit hardest and can't see a way out under current policy.
Pro-establishment narrative
This report is overall positive news for the economy, even if the inflation was a little higher than hoped. Core inflation is slowing and the economy is trending up, so the Fed’s policy is working as intended.
