(The Center Square) – Federal data released Friday showed that inflation remains elevated. The figures came out on the heels of other data showing the U.S. Gross Domestic Product underperformed in the first quarter of this year.
Both the inflation and GDP data points raised concerns among economists and renewed criticism of President Joe Biden among Republicans.
“Given the elevated levels of inflation – and this is the new normal for 2024 – the market is going to need to get over hopes for Fed rate cuts,” Chris Zaccarelli, chief investment officer for Independent Advisor Alliance in North Carolina, said in a statement. “Yes, they may cut once (or not at all), but there is no possibility the Fed is going to cut rates 3 or more times, unless we go into recession.”
The U.S. Bureau of Economic Analysis released the Personal Consumption Expenditure data Friday, which showed the PCE rose 0.3% last month. The federal Consumer Price Index, another leading marker of inflation, reported prices rising 0.4% last month.
“A lot of people have argued elevated inflation is just because of housing and housing is lagged/inappropriate,” Jason Furman, a Harvard economist and former economic advisor during the Obama administration, wrote on X, formerly known as Twitter, on Friday.
“But even excluding housing, recent inflation is highly elevated…” he continued
That inflation data comes after new federal data this week showed that the GDP increased at an annual rate of only 1.6% in the first three months of this year, much less than the 3.4% growth in the previous quarter and well below experts’ expectations.
“New GDP numbers out – yet ANOTHER depressing quarter under Biden…” Richard Stern, an expert at the Heritage Foundation, wrote on X. “This marks the THIRD quarter in a row of the government growing faster than the economy!
“That’s socialism at work as the woke left-wing government eats everyone else’s lunch off the buffet table – all while the personal saving rate falls off a cliff and is less than half what it was pre-pandemic,” he added.
Republicans heaped on more criticism of Biden after the new economic data.
“Antisemitism is running rampant on campuses,” U.S> Rep. Elise Stefanik, R-N.Y., wrote on X. “Illegal immigrants are invading both borders. Inflation is rising and draining the pocketbooks. America is experiencing one crisis after another under Joe Biden’s failed leadership.”
Prices have risen nearly 20% since Biden took office.
“President Biden’s recipe of outlandish spending and higher taxes is robbing the American people and hurting the economy,” House Ways and Means Committee Chairman Jason Smith, R-Mo., said in a statement. “The soaring cost of gas and groceries keeps killing family budgets – leaving Americans struggling to either pay rent or buy a house. The latest GDP report shows an economy sagging under the weight of failed economic policies. With prices continuing to rise and the Federal Reserve likely to keep interest rates at the highest levels in over 20 years, the American Dream is slipping out of reach for more families.”
Biden, though, has rebuffed criticism and pointed to his other economic wins, as The Center Square previously reported.
“Today’s report shows the American economy remains strong, with continued steady and stable growth,” Biden said in a statement last week. “The economy has grown more since I took office than at this point in any presidential term in the last 25 years – including 3% growth over the last year – while unemployment has stayed below 4% for more than two years.”
inflation is a concern now?
average american people that play by the rules you know the ones demoncrats hate have been suffering for most of this clowns presidency.
this administration cares for illegals and other countries more that american citizens.
The inflation problem will never be reversed until the 10-15 million illegal wealth consuming locusts Joe invited in are returned to their home countries that are now eating up and driving up our capacities to grow food, pump enough oil from the ground to sustain the new higher demand he brought in for gasoline, and reverse the higher costs of housing these people whose increasing domiciling demands are driving the cost of limited, mostly unavailable housing, through the roof. The financial ability of our rapidly depleted social programs, now being financed to house, feed, and medicate illegals with money and benefits designed for the law abiding Americans only, will force the government into law defying positions in power and rights abuses to keep the lid on the ever increasing march to outright sane citizen revolt. A quick recovery from the Biden incompetency can only be had by his and the Congressional squad’s removal in November, followed by the return to sender of ALL illegal aliens, and the drugs and donkeys they rode in on.
YET THE IDIOT dem voters, will STILL LIKELY vote for joe, just because “they hate trump”
They actually hate themselves for the failures that they are,,,they just won;t admit it and try to blame Trump for thiri own personal failures,,,His personal sucesses shame them so have to be attacked.
“Antisemitism is running rampant on campuses,” U.S> Rep. Elise Stefanik, R-N.Y., wrote on X. “Illegal immigrants are invading both borders. Inflation is rising and draining the pocketbooks. America is experiencing one crisis after another under Joe Biden’s failed leadership.”
Failed leadership is being kind… traitorous leadership is more like it
That is why if I Had the power, EVERYONE Involved, from those DOING these hate filled protests, to those FUNDING IT, to those organizing it, to those in the campus admins CONDONING it, would ALL BE Charged as accessories, UNDER THE RICO STATUTE.
“Prices have risen nearly 20% since Biden took office.”
And then the products shrank by 20% but the higher price remains. The “shrinkflation” is never acknowledged by the .gov. Inflation rate is more like 40% since Biden “took the office”.
YET biden and co, still claims ‘things are great.
Really makes you wonder, WHAT THE HELL is going through the brains, of the 38% who SAY HE IS STILL Doing good?
I recall Mitt Romney saying that 37% will never budge, or words to that effect.