Another bad day for the Inflation Reduction Act By Silvio Canto, Jr.
We are not sure about Senator Manchin’s 2024 U.S. Senate plans. We did hear that Senator Tester of Montana is running for re-election. In fact, Senator Tester said that he is running because “Montanans need a fighter holding Washington accountable and I’m running to defend our Montana values.”
Well, I hope someone will ask both men about the Inflation Reduction Act in light of the new inflation concerns. This is from The Wall Street Journal:
This measure of inflation, a favorite of the Federal Reserve, accelerated in January at the fastest monthly pace since June. The PCE index is worth following because it offers a view of price changes from business sources and takes into account the substitution of goods and services in a way the consumer-price index doesn’t.
PCE inflation overall rose 0.6% for the month, up from 0.2% in each of November and December.
The PCE index over the last 12 months is up 5.4%, which was up slightly from December after several months of decline. Inflation in services drove much of the increase and is up 5.7% since January 2022.
The story here is that inflation is proving stickier than many expected.
Don’t you hate it when things prove stickier than expected? I think consumers shopping for food can relate to that. The Biden administration keeps telling you that inflation is dropping, but the prices of food and lots of other things are not.
The new report means that Chairman Powell may have to tinker with those interest rates again. The new inflation concerns mean that Mr. Manchin and Mr. Tester will get questions about their votes that made the infamous Inflation Reduction Act possible. I think a lot of good people in Montana and West Virginia will ask these gentlemen why they voted with Senator Schumer.
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