Inflation surged an unexpectedly strong 9.1% last month, raising the risk of even steeper rate hikes from the Federal Reserve as Americans get pummeled by record gas prices, soaring rents and stiff grocery bills.
The dismal June reading released by the Labor Department on Wednesday — the highest since November 1981 — will ratchet up pressure on President Biden, who has faced widespread criticism over his muted initial response to inflation as higher prices slammed household budgets.
The data also stoked speculation about stiffer rate increases from the Fed, which hiked its benchmark interest rate by three-quarters of a percentage point for the first time since 1994 after a higher-than-expected inflation reading in June.
Investors are currently betting on another three-quarter percentage point hike later this month, with a one-in-three chance of a full-point hike, according to Bloomberg.
On a monthly basis, the Consumer Price Index, a closely watched inflation gauge that measures what consumers paid for goods and services, rose 1.3% from May to June.
I miss mean tweets!! Anyone else?
Buy an Electric car
It was a few days ago the Donks where praising the surprising jobs increase for June.
Hello McFly??? We have many many more months of bad inflation news. Housing market is slowing, interest rates are still adjusting, the FED will prob increase another .25% – although it should be left alone so the economy can adjust. Hunkering down at the worst time of the year (summer) is needed going into fall. There will be huge struggles again during the holidays and energy costs during the winter. Late next spring should be the mark on the wall when things “may” get better for all.
Key word is “may”.