Hillbilly Egg G: Vance is vindicated.
Last month, Republican vice presidential candidate Sen. J.D. Vance (R-Ohio) egg price It's approaching $4.
“When Kamala Harris took office, eggs were just $1.50 a dozen. Today, 12 eggs cost about $4, thanks to Kamala Harris' inflationary policies. “Pennsylvania is actually experiencing some of the worst food price increases in the nation, and that's because of her critical vote on the Inflation Explosion Act,” Vance said while stopping at a supermarket in Reading. spoke. , Pennsylvania.
critic I jumped on it. The average price of eggs is Really only $3.20 They said in August. Others noted a price label on a shelf behind Vance that appeared to indicate lower egg prices.
Even if the Ohio senator is as wrong as the leftists claim; Vance's speech was politically brilliant.. The price of eggs attracted the attention of the whole media. At $3.20 a dozen, the price has more than doubled since Donald Trump was president.
As it turns out, Vance was closer to his target than his critics. On Thursday, the Labor Department released the latest inflation statistics. of The price of eggs increased by 10% It was 8.4% before seasonal adjustment and 8.4% after seasonal adjustment. (Before you ask, I'm not sure why egg prices are expected to rise in September, necessitating a seasonal deflator.) Compared to a year ago. Egg prices rose by 39.6%.
The average price of 12 eggs in the United States is $3.82. This number is very close to Vance's estimate.
Rising inflation is the latest blow to the Fed's deep interest rate cuts
overall Consumer Price Index (CPI) rose 0.2% in Septembertwice as much as expected. Core CPI, which excludes food and energy, rose 0.3%, worse than the 0.2% expected and in line with last month's rise. Annualized, the inflation rate is 3.8%.
Inflation can fluctuate from month to month. To understand the underlying inflationary pressures, look at the following: Median CPI calculated by Cleveland Fed. This was a 0.3% month-on-month increase and matched the gains in July and August. The annualized rate was 4.15%, the highest level since April.
of Cleveland Fed trimming average is 16% Inflation also rose by 0.3%, the highest level since April. The annualized rate was 3.7%, the highest level since March.
Both the median and the trimmed mean suggest that: Inflation is not falling. Instead, progress in curbing inflation appears to have stalled sometime over the summer, just as the Fed began to make it clear that it was moving quickly to begin cutting interest rates.
This should come as no surprise to anyone who has been observing the money supply. M2 has been rising since April And it is currently at its highest price since January 2023.
this is the latest evidence Lawsuit over the Fed's 50 basis point interest rate cut last month. After last week's very strong jobs report and this week's inflation report, it is becoming increasingly clear that the Fed is on the wrong side of both its employment and price stability responsibilities. If they had waited a few more weeks after the election, they would have had more information and likely wouldn't have had as many cuts.
The bond market appears to have concluded that the Fed's rate cut was a mistake. Yields on 10-year Treasuries have been rising since the Fed cut rates. Currently, it has firmly established itself at a level of over 4%. By midday Thursday, hours after the CPI report was released, the 10-year Treasury yield had risen to about 4.12%.
Interest rates are rising despite the Fed's rate cuts. Investors don't think the Fed will be able to maintain its current policy. The winds of inflation are blowing again, and the Fed will likely need to take action, such as pausing rate cuts.
Unfortunately for the Fed, any post-election pause would likely be seen as a judgment on the incoming administration's fiscal policy. Recognizing second-guessing voters can be helpful. Damage to Fed Credibility And perhaps its independence is highly valued. Of course, this cost could have been avoided if the Fed had simply kept interest rates on hold until after the election.
