Biden

Inflation Eases an Inch

Update 607 — Inflation Eases an InchBut Hits Home(s): Prices, Sales, Rents The main takeaway from yesterday’s CPI report: inflation remains high, though decelerating marginally. CPI increased for consumer goods by 0.3 percent in April, down from the 1.2 percent increase in March. Increases in prices for food, airline fares, new vehicles, and shelter contributed …

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Legislative High Season

Update 604 — Legislative High Season:100-Day Roadmap for Econ. Policy Bills Congress settles back after recess this week, facing a packed to-do list and a ticking clock. The appropriations process for FY2023 is under way. Again, Democrats’ immediate priority is reconciliation. Negotiations with Sen. Manchin focus now on climate and health provisions, but we saw …

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Tax as a Class Act

Update 603 — Tax as a Class Act:Code’s Impact on Income Inequality This past Monday marked the end of tax filing season for 2022. Average Americans again find themselves paying a higher rate than wealthier filers. OMB estimates that the 400 wealthiest Americans pay an average tax rate of only 8.2 percent, widening inequality. Paying a higher tax …

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Fighting Inflation by Relieving Costs

Update 602 — Symptom vs. Disease:Fighting Inflation by Relieving Costs There is a difference between battling inflation, which is the Fed’s errand, and battling its effects, which is more of a fool’s errand. With prices up 8.5 percent from a year ago and midterm primary season starting next month, the temptation is to focus on easing costs …

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Decision Ahead on Student Loans

Update 601 —  Degrees of Debt:Decision Ahead on Student Loans The CPI Report for March, released yesterday, showed prices rose by 8.5 percent during the last 12 months. Energy prices moderated markedly during March. Some predict this will represent the high-water mark of an inflation rate that will remain elevated through the fall.  The Biden …

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 Eyes on the Pump Price

Update 599 — Eyes on the Pump Price:Energy Costs and Biden’s Inflation Fight Hearings on the Hill this week focused on elevated gas prices Americans are facing at the pump, causing and affecting elevated energy prices amounting to a third of headline inflation. President Biden has taken up the battle against inflation. Some responses he has …

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Biden FY23 Budget

Update 597— Biden FY 23 Budget:Balance, Parity in Appeal to Center President Biden submitted his FY23 budget saying that budgets are statements of values. The statement here is muted, with an increase in domestic spending and an increase in military spending by about 10 percent, a puzzling nod to austerity of all things, investments in …

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Debating (How) America COMPETES

Update 596 — Arsenal of Democracy:Debating (How) America COMPETES The America COMPETES Act making its way through Congress could leave an indelible stamp on competitiveness, manufacturing, workforce provisions, and industrial policy generally. COMPETES provides overdue investments for the US to set standards for the global economy and to expand economic opportunities domestically. The bill rejects …

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The Power of Sanctions

Update 595 — Power of Sanctions:All United on the Western Front President Biden heads to Brussels today, the most critical overseas trip of his presidency yet. Biden will bring with him US support for Ukraine, the NATO alliance, and other European allies in the form of a new round of sanctions. These will aid enforcement of current …

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Fed Hikes Rates 25 bps

Update 593 — Fed Hikes Rates 25 bps:Brakes on Inflation, and Recovery Too? After fostering and assisting economic recovery in manifold ways, the Fed is reversing course. Today, Fed Chairman Jerome Powell announced the Fed will be raising interest rates by 25 basis points (or 0.25 percentage points). This is the first rate hike since December 2018 …

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