“Inflation rose 0.1% in August even with sharp drop in gas prices” is the CNBC headline.
The Nasdaq was down around 4% and the Dow Jones over 800 points as of our last check. This comes as a new report shows inflation back on the rise. Recently, Joe Biden bragged about the last time the inflation report came in, showing things had flatlined.
Economists hoped for a 0.1% drop this time around. Unfortunately for Biden but also all Americans, it went up by that much instead, despite gas prices falling. CNBC reported in part:
See stock charts:
It seems the economic difficulties have no end in sight. Many have speculated that the student debt bailout of $10,000 per federal loan borrower may have contributed.
In our view:
Fed Chairman Jerome Powell will likely have to keep hiking interest rates in an attempt to counteract all the government spending. Arguably, without the recent hikes, inflation would be even more out of control.
While we are not financial experts or giving official advice, many consumers may want to consider working more hours, paying off debt, spending less on discretionary items and being cautious as the economy seems unpredictable right now. This is not official advice however, it is simply our opinion.
Stay tuned to Media Right News for more updates on this and other topics that could potentially affect you.
