Tag: inflation

Tennessee Senator Blackburn Readies for Debt-Ceiling Fight

Bradley Vasoli
Sen Marsha Blackburn

Having received an appointment to the U.S. Senate Finance Committee this week, Senator Marsha Blackburn (R-TN) is poised to play a major role in this year’s fight over raising the debt ceiling. 

Earlier this week, Blackburn joined her Utah Republican colleague Mike Lee in penning a letter, signed by 22 of their fellow senators, insisting a rise in the federal debt limit must only happen as part of a deal to pare back government spending. In an interview with The Tennessee Star, Blackburn explained her view that fiscal circumstances demand such an agreement so debt does not snowball into an even more unmanageable burden on American families. 

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Wisconsin’s Labor Force Participation Rate Lower than the Worst Days of the Pandemic

M.D. Kittle

In his state of the state address last month, Gov. Tony Evers boasted about Wisconsin’s low unemployment rate. What the Democrat failed to mention is Wisconsin’s dismal labor participation rate, a number that underscores one of the biggest economic challenges facing Badger State businesses. 

“Our labor force participation rate is worse today than it was at the bottom point of COVID when our economy was shut down,” said Scott Manley, Executive Vice President of Government Relations for Wisconsin Manufacturers & Commerce. 

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Fed Hikes Interest Rates to Highest Levels in 15 Years

Admin

by John Hugh DeMastri   The Federal Reserve raised its target federal-funds interest rate by a quarter percentage point Wednesday, the slowest in a series of eight hikes that began in March 2022. The hike brings the Fed’s target rate to a range between 4.5 percent and 4.75 percent, with the Fed continuing to slow its pace after six consecutive hikes of more than 0.5 percentage points, according to a Fed press release. While Fed officials have consistently said that they anticipated a pause after the target funds rate surpassed 5 percent, investors have increasingly expected that the Fed will change its tune by its next meeting — scheduled for May 2-3, 2023 —if inflation continues to drop, Bloomberg reported. The disconnect between the Fed and investor expectations has put Fed officials in a “difficult spot,” Will Luther, the director of the American Institute of Economic Research’s Sound Money Project, told the Daily Caller News Foundation. “Fed officials can either meet expectations where they are, which might mean they fail to bring down inflation as quickly as they would like, or surprise markets by delivering the projected rate hikes, which would bring down inflation but at the risk of a potentially severe recession.” Current…

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Fed Likely to Raise Interest Rates, But at a Less Aggressive Rate

Admin

The Federal Reserve is likely to further slow its historically aggressive pace of interest rate hikes at its Wednesday meeting as inflation cools, but consumers will still feel the pinch of higher interest rates, according to economists who spoke with the Daily Caller News Foundation.

The Fed is likely to hike interest rate hikes by just 0.25 percentage points after its Wednesday meeting, setting the range for its target federal-funds rate to between 4.5% and 4.75%, due to slowing inflation, The Wall Street Journal reported. Although consumers may see some relief from inflation as a result of the Fed’s rate hikes, they might give back some of those gains as heightened interest rates drive up borrowing costs, Heritage Foundation economist E.J. Antoni told the DCNF.

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Electricity Prices Jumped More than Double that of Inflation Last Year, Consumer Index Shows

Just the News

Prices for electricity in the United States soared well above overall inflationary levels last year, putting an added squeeze on consumers already reeling from significantly inflated costs of most consumer goods.

The Consumer Price Index Summary released by the U.S. Bureau of Labor Statistics this month showed the 12-month average price of electricity last month jumping a whopping 14.3 percent, more than double the 6.5 percent of overall price increases.

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New Survey Shows Wisconsin Businesses See Recession Ahead

M.D. Kittle

Battered by ongoing high inflation, a majority of Wisconsin businesses see a recession ahead, according to Wisconsin Manufacturers & Commerce’s latest Wisconsin Employer Survey.

WMC’s survey finds 60 percent of businesses believe the Badger State economy is headed for a recession this year. On the surface, the number appears to be an improvement from last summer’s survey when 71 percent of respondents worried a recession was looming. But Nick Novak, WMC’s vice president of communications and marketing, said more employers moved from being sure about a recession to uncertain about the economy.

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Commentary: Wokeness Is Hollowing Out The Fed

Admin

Are you wondering why checking out at the grocery store these days feels like making a mortgage payment? This week’s four-decade-high inflation is a direct result of the Federal Reserve taking its eye off the ball over the last two years. Instead of focusing on its mandate of keeping prices stable, it has been more concerned with financing massive federal deficits and kowtowing to liberal ideology.

But now the Fed chair is claiming just the opposite.

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Kemp Budget Proposal Includes More Tax Rebates, Spending on Schools and Police, and a 2024 Cost of Living Increase for State Employees

Eric Burk

Governor Brian Kemp announced his budget proposal on Friday, highlighting $250 income tax rebates, one-time discounts on homeowner property tax, and spending on education, economic development, improving healthcare access, and a $2,000 cost-of-living increase for state employees.

“Despite national economic headwinds caused by 40-year high inflation, Georgia’s economy remains a leader nationwide. As we look ahead to the upcoming fiscal year, we expect the state’s economy to be well positioned to withstand any further national economic slowing,” he said in a letter to lawmakers.

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Nonprofit Says Georgians Are Still Hurting from Inflation

The Center Square

While the Consumer Price Index for All Urban Consumers dropped 0.1% in December and the year-over-year inflation rate stands at 6.5%, a Georgia nonprofit says Peach State residents may not be feeling the good news.

“We keep seeing positive headlines about the inflation rate, but that good news is lost on average Georgians who are continually pinched on the cost for everyday necessities like groceries and gas,” Erik Randolph, Georgia Center for Opportunity’s director of research, said in a statement. “Although there was some positive news in the December numbers, it’s important to keep in mind that core inflation remained elevated, including for food. If policymakers in Washington truly want to help the most economically vulnerable in our country, they must return to fiscal sanity and rein in the spending.

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At Inauguration, Georgia Gov. Kemp, LG Jones Call for Tax Relief, Money for Law Enforcement and Schools, and Tougher Sentencing Guidelines

Eric Burk

During their inaugural speeches, Governor Brian Kemp and newly-elected Lieutenant Governor Burt Jones painted a picture of Republican successes in Georgia but called for further tax relief, investment in schools and health care, and tough-on-crime policies. “Last year on the campaign trail, no matter where we went, hard-working Georgians told us about the pain they and their families were feeling at the pump, at the grocery store, in everyday life, thanks to 40-year-high inflation. I know these pains haven’t gone away,” Kemp said Thursday after being sworn in for a second term. The inauguration came amid the first week of the legislature’s session, and a day before Kemp’s office will share his budget proposals with legislators. Kemp said his proposal would include $2,00o pay raises for state employees, including teachers and law enforcement; $150 million in grants to address learning loss; $1 billion set aside for income tax refunds; and $1.1 billion for homeowner property tax relief. In his speech, Jones praised Kemp for his leadership and said Kemp made Georgia the first state to reopen the economy amid COVID-19. “We have a $6 billion surplus. Our unemployment rate is a record low. We’ve created hundreds of thousands of new…

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Consumers Are Paying Record Credit Card Rates Due to Inflation

Admin

Average interest rates for bank-issued credit cards this past November surpassed a record set in 1985, Axios reported Wednesday, citing data from the Federal Reserve.

The previous record rate was 18.9%, set in the first quarter of 1985, with November’s rate of 19.1% comfortably eclipsing it, according to Axios. Credit card interest rates climbed alongside the Federal Reserve’s federal funds rate, which the Fed hiked a historically aggressive pace in 2022 to blunt economic demand and reduce the impact of inflation, NPR reported.

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Georgia Gas Tax Moratorium Ends, Rises to 31.2 Cents

Eric Burk

Governor Brian Kemp allowed Georgia’s moratorium on state gas and diesel taxes to expire on Tuesday night, after first introducing the moratorium in May and renewing it six times since then.

In 2022, Georgia’s gas tax was 29.1 cents and the diesel tax at 32.6 cents, but that’s going up on Wednesday to 31.2 cents and 35 cents, respectively. As of January 10, before the taxes took effect, Georgia’s average gas price was $2.808, below the national average of $3.270, according to AAA Gas Prices.

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Youngkin at 52 Percent Approval in VCU Poll

Eric Burk

Governor Glenn Youngkin is at 52 percent approval, 32 percent disapproval in a Virginia Commonwealth University Poll that comes as he makes a pitch for tax cuts and business incentives ahead of a General Assembly session beginning January 11.

“Poll respondents feel that inflation needs to be dealt with and democracy ensured for our future,” former governor L. Douglas Wilder said in an announcement of the L. Douglas Wilder School of Government and Public Affairs poll.

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Big Banks Predict Significant Economic Downturn in 2023: POLL

Admin

Of the 23 major financial institutions that work directly with the Federal Reserve, 16 anticipate a recession within the next 12 months, with two anticipating one the year after, according to a survey published by The Wall Street Journal Monday.

These institutions, which range from Bank of America to UBS, note that Americans are spending their savings, banks are heightening lending standards and the housing market is in a decline, all classic warning signs that a recession is impending, the WSJ reported. All of this is being exacerbated, the banks say, by the Fed’s historically aggressive pace of interest rate hikes, designed to blunt stubbornly persistent inflation.

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Venezuela, Cuba, and Argentina Have the Highest Inflation in Latin America

ADN America

Venezuela, Cuba and Argentina registered the highest inflation in 2022 compared to other Latin American countries, according to figures from the Economic Commission for Latin America and the Caribbean (ECLAC) and BCC reports .

The report covers the period between October 2021 and October 2022, where the highest growth of the index is led by the Caribbean country, which accumulates an increase in inflation of 146%, exceeding that of Argentina by more than 50 percentage points (87 8%), the second on the list, and Cuba, which ranked third with 34.2%.

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Virginia Minimum Wage Set to Increase on January 1

The Center Square

Virginia’s minimum wage is set to increase from $11 to $12 per hour Jan. 1, a rise that comes after an attempt by Republican lawmakers to halt the minimum wage increase failed earlier this year. 

The increase comes as a result of 2020 law that outlined incremental wage increases starting in 2021. The law specified that employers must pay $12 an hour starting Jan. 1 and paves the way for $15 an hour in future years, but that’s dependent on future action by the General Assembly. 

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Commentary: Inflation Takes a Bite Out of Christmas Cheer

Admin

Americans may want to light the fireplace more often this winter and cut back on the holiday festivities, according to new data from the Energy Information Administration and the Bureau of Labor Statistics.

Energy costs have remained consistently high for over a year, having risen over 13% since November 2021. So, American families can expect to pay significantly more for their heating oil as the colder months approach. As of the week of Dec. 12, the average cost for residential heating oil hit $4.56 per gallon, which is about 95% higher than it was the week of Dec. 14, 2020, shortly before President Joe Biden took office.

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Sen. Ron Johnson Argues to Eliminate $9.8 Billion in Earmarks From $1.7 Trillion Omnibus Bill

Susan Berry, PhD

Wisconsin Senator Ron Johnson (R) joined with his colleagues Senators Rick Scott (R-FL), Mike Lee (R-UT), Mike Braun (R-IN), and Rand Paul (R-KY) to oppose the $1.7 trillion omnibus spending bill and argue for an amendment that would eliminate all earmarks.

“Thousands of individual projects here, both Democrat and Republican,” Johnson said Tuesday during a press conference

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Blackburn Releases New Video on the Economy, Discusses What Has Kept Tennessee Growing as Nation Struggles

Bradley Vasoli

Tennessee Republican Senator Marsha Blackburn is preparing to release a video via social media discussing the state’s economy and spoke with The Tennessee Star this week to discuss both the pressures it endures as well as its bright spots compared with other regions.

In the one-minute spot, which shows the senator touring a Clarksville-area manufacturing plant, she discusses the challenge ongoing inflation poses to producers as they attempt to provide affordable goods to Tennesseans. 

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Federal Reserve Raises Rates by Half Percentage Point, Signaling Slowing of Rate Hikes

Just the News

The Federal Reserve on Wednesday announced a reduced but still notable hike in U.S. interest rates, with the central bank moving to hike rates by half a percentage point as part of its ongoing efforts to tamp down inflation.

The hike, which comprises 50 basis points, is less than the three-quarter-point hikes the bank has enacted every month for the last several months, though it still represents a significant raise at a time when the economy remains fragile after years of turmoil and unertainty.

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Federal Inflation Data: Grocery Prices Continue to Rise Nationally

The Center Square

While overall inflation has slowed from its rapid pace earlier this year, grocery prices continue to rise, putting Americans in a pinch, according to newly released federal inflation data.

The U.S. Bureau of Labor Statistics released the monthly Consumer Price Index report, which showed prices rose 0.1% in November, less than experts predicted, contributing to a 7.1% increase in the past 12 months.

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Average American Family Has Effectively Lost $7,100 Under Biden, Economist Says

Admin

An economist says the average American family has effectively lost more than $7,000 due to inflation and higher interest rates since President Joe Biden took office.

The consumer price index, a key inflation measure, increased 0.1% in November, up 7.1% from November 2021, the U.S. Bureau of Labor Statistics reported Tuesday. The figure marks a slowdown in rampant inflation, but not a reversal of the trend that has caused prices for everyday goods like food and gas to ratchet up in recent months.

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Commentary: Biden Admin Blames the American People for its Own Ludicrous Spending

Admin

Last week, Treasury Secretary Janet Yellen blamed the American people for the 40-year high inflation we have been enduring.

Appearing on “The Late Show with Stephen Colbert,” she said that Americans “were in their homes for a year or more, they wanted to buy grills and office furniture, they were working from home, they suddenly started splurging on goods, buying technology.” According to her, this consumer “splurging” caused prices to rise so much.

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Key Inflation Metric Shows High Prices Aren’t Going Anywhere

Admin

Wholesale prices beat expectations in November, a sign that inflation might not fall as quickly or steeply as previously hoped, according to CNBC.

Producers and businesses saw prices rise 0.3% from October, with so-called “core prices” rising 0.4% when the more volatile food and energy sectors were discounted, according to the Bureau of Labor Statistics (BLS). With both measures expected to rise by just 0.2%, as well as a 3.3% increase in food costs offsetting a 3.3% decline in energy costs, producers prices are still set to remain well above pre-pandemic levels, even though they have fallen from the 11.7% year-over-year surge seen in March, CNBC reported.

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Arizona State Senate President-Elect Reveals Plan to Help Arizonans Struggling with Rising Prices

Neil Jones

State Senate President-elect Warren Petersen announced Tuesday his plan for helping Arizonans struggling with raising prices catch a break.

“Government has done extremely well over the last few years by adding a record amount of revenue. Unfortunately, hardworking taxpayers are reeling during this period of runaway inflation and are having a tough time paying for the most basic necessities,” said Petersen.

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Special Report: Latino Youth Vote Comes into Focus after Democrats Sweep Gen Z

ADN America

by Gelet Martínez Fragela   As Republicans continue to grapple with a devastating loss among young adults from the 2022 midterm elections, some statistics suggest the GOP has an opportunity to pick up some traction with the Latino youth vote as their concerns could grow with age about crime, inflation and civil liberties. One million young Hispanic Americans are expected to turn 18 every year for the next 15 years, according to the Pew Research Center, making Hispanic American youth a key target demographic for both parties as a million new eligible voters will be borne from the group each year for the next decade and a half. Numbers don’t lie: Democrats conquered the youth vote in 2022 Tufts University’s Tisch College of Civic Life, one of the most dogged trackers of young voters, reported last month that 27% of 18-to-29 voters cast ballots in midterm elections, and that 63% of them voted Democratic in House elections. “Democrats would have gotten crushed without young voter support,” reported CNN’s Harry Enten in a Nov. 12 analysis. “Democratic House candidates won voters under the age of 45 by 13 points, while losing voters ages 45 and older by 10 points. Breaking it down further, House Democratic candidates…

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Commentary: Don’t Give an Inch on the Debt Ceiling

Admin

The dust has barely settled from the contentious midterms, and the battle lines are already being drawn for the next legislative fight in Washington: the debt ceiling. With the nation at unprecedented levels of indebtedness, the choice in this fight is a stark one: a path toward stability or fiscal Armageddon.

If that sounds hyperbolic, consider the following facts about America’s finances.

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Commentary: A Blueprint for Tackling America’s Crippling National Debt

Admin

Our debt is too large. Inflation is too high. We rarely pass a budget anymore — this year neither Budget Committee even bothered to come up with one. This is how great nations become weakened nations, and with all the threats on the world stage, it is urgent we make a change now.

What we need is a budget that changes our fiscal trajectory away from one where the debt is growing faster than the economy, to one where it is stabilized and then gradually brought down.

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Commentary: Don’t Be Fooled by October’s Decrease in the Rate of Inflation

Admin

October’s Consumer Price Index, the measure of the national rate of inflation, was at 7.7 percent in October, compared to a reading of 8.2 percent in September. The report propelled “U.S. stocks forward [at the open] and sent Treasury yields tumbling as Wall Street weighed the implication of softer prints on Federal Reserve policy.”

The decline in the rate of inflation was driven by declining annual prices of “necessities” such as smartphones (-22.9 percent), admission to sporting events (-17.7 percent), televisions (-16.5 percent), and women’s outerwear (-1.4 percent), all items that are discretionary purchases.

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Farm Bureau Survey Finds Thanksgiving to Be the Most Expensive Yet as Cost Rises 20 Percent

Just the News

Thanksgiving dinner will cost 20% more this year compared to last year, according to a Farm Bureau survey published Wednesday, with the market signaling record-high prices for the second year in a row.

The average cost to feed 10 people for Thanksgiving will be $64.05, or under $6.50 per person, the Farm Bureau said. This is a $10.74 or 20% cost increase from 2021’s average of $53.31, which was also a record high at the time, according to historical data.

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Ohio Democratic Senatorial Candidate Changes Stance on Confronting Inflation

Hannah Poling

Democratic U.S. Senate nominee Representative Tim Ryan (D-OH-13) has shown support for regulations that would prevent inflation while simultaneously favoring larger spending bills.

This year Ryan voted against preventing regulations that would cause inflation and a gas tax hike.

However, in late 2021 he favored a larger spending bill (“Build Back Better”) over a slimmed-down plan favored by moderate Democratic senators. Ryan said that Democrats should not minimize the extent of inflation but rather emphasize “Build Back Better” as a way to address it.

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