The stock market took a significant hit recently as President Joe Biden’s economy continues to struggle, with consumer prices climbing even higher than anticipated.
Prices were expected to continue going up. But the conservative estimate of 2.9% was surpassed in January, reaching 3.1% — an improvement from December when the rate was 3.4%.
The rate is a decrease from December, which saw an even higher rate of 3.4%, according to PJ Media. However, managing to miss the expected post is not the start to the year the Biden administration wanted for its economy.
BREAKING: Inflation is up 3.1% over last year — "HOTTER than expected."
Overall prices are up 17.9% since Biden took office. pic.twitter.com/2fl0x5lOAW
— RNC Research (@RNCResearch) February 13, 2024
The Federal Reserve has been showing major concerns about lowering interest rates as cutting the rates too soon can lead right back to the major inflation that was witnessed earlier in the Biden administration.
While CPI inflation is at 3.1%, inflation is much higher in many basic necessities:
1. Car Insurance Inflation: 20.6%
2. Transportation Inflation: 9.5%
3. Hospital Services Inflation: 6.7%
4. Car Repair Inflation: 6.5%
5. Homeowner Inflation: 6.2%
6. Rent Inflation: 6.1%
7. Food…— The Kobeissi Letter (@KobeissiLetter) February 13, 2024
“They were right to be patient because this is the kind of number that is going to cast doubt on whether there really is a lot of deceleration in store for inflation,” said the founder of Inflation Insights, Omair Sharif. “This is definitely a spooky number.”
The effects are already being witnessed, with the Dow seeing a massive 700-point plummet on Tuesday directly because of the higher-than-expected inflation, per CNN. The decline was a 1.8% drop, with the S&P 500 and Nasdaq Composite also seeing comparable drops in value.
Things may continue to get worse in the stock market as well if inflation doesn’t begin to decline, with Chris Zaccarelli writing that “The stock market can’t keep rallying if rates are going to be higher-for-longer — especially if the assumption that the Fed is completely done raising rates is incorrect.”
As if the rising inflation isn’t enough either, the average earning under Biden has decreased by 2.1%, meaning that not only are stocks going down and everyday goods increasing in price, but the average American is earning less before they even have to pay their taxes.
FOX BUSINESS: Average hourly earnings are down 2.1% under Biden.
"The average American is getting hit the hardest by this hot inflation number." pic.twitter.com/7Phm1rzHuh
— RNC Research (@RNCResearch) February 13, 2024
Biden has never been famous for his economic policy, but managing to fail on every front of the economy is shameful. At some point, there is a basic expectation that at least something needs to improve, but the Democrats have continued to watch things burn while holding onto their extinguishers.
