Last week proved to be a roller coaster for the US economy, with potential policy shifts, looming labor strikes, and mounting inflation concerns. Key highlights include speculations on the Federal Reserve’s inflation target, potential repercussions from a United Auto Workers strike, a surprising surge in producer prices, massive losses for the Federal Reserve, and falling US incomes based on recent census data.
Peter Schiff Comments on Fed’s Alleged Secret Inflation Target
Gold bull Peter Schiff stirred the pot last week, hinting that the Federal Reserve might have covertly abandoned its 2% inflation target. Schiff suggests that the central bank may subtly do away with price stability as a mandate, despite the closely-watched consumer price inflation report’s implications for Federal Reserve monetary policy. Read the full article here.
Potential UAW Strike Could Cost US Economy Billions
The US auto industry’s recovery from the pandemic and semiconductor shortages could face a new roadblock – a potential strike by the United Auto Workers (UAW). Should a 10-day strike against General Motors Co. GM, Ford Motor Co. F, and Stellantis NV STLA take place, the US GDP could take a $5.6 billion hit, with the Michigan economy possibly plunging into recession, according to the Anderson Group. Read the full article here.
See Also: If Trump Has A Change Of Heart, He Won’t Have To Go Very Far To Attend The Third Debate. GOP Is Bringing
Producer Prices Unexpectedly Soar in August
Inflationary fears have been reignited as producer prices took a surprising leap in August. The Producer Price Index (PPI) recorded a year-on-year increase of 1.6%, sharply higher than the 0.8% observed in July, significantly surpassing economists’ consensus estimate of 1.2%. Read the full article here.
Federal Reserve Losses Exceed $100B, Predicted to Surge
The Federal Reserve has reportedly incurred over $100 billion in losses and experts predict a steep climb in the future. With higher interest costs than its earnings from bond interests and financial sector services, the losses are projected to double, possibly reaching $200 billion by 2025. Read the full article here.
Chamath Palihapitiya Highlights Declining US Incomes
Billionaire investor Chamath Palihapitiya pointed out a worrying trend in recent US Census data. The data reveals a decline in US incomes and a rise in the poverty rate during the Biden presidency, with US incomes falling each year since Biden took office. Read the full article here.
Read Next: Americans alone spend $100 billion on nicotine products per year. One startup has synthesized a medicine that eliminates the need to smoke in up to 95% of tested smokers. It’s called Rexis Biotech and you can invest in it before the product’s public release.
Photo Courtesy: David Kn On Shutterstock.com
Engineered by Benzinga Neuro, Edited by
The GPT-4 Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you.