THE END OF LOW INTEREST RATES? Could a Fed rate cut in December be the last of this cycle?
The U.S. labor market continues to show signs of a persistent slowdown. At the same time, inflation data is mixed, with core inflation exceeding expectations while headline inflation continued to moderate. Accelerating producer prices suggest that inflation may be more stubborn than previously anticipated.
Previously anticipated by whom? You don’t need to be Milton Friedman (although it probably helps) to know that Congress can’t conjure a trillion dollars out of thin air two or three times a year without higher inflation.
And the longer interest rates stay high, the bigger a problem this becomes: Average American household has more than $10,000 in credit card debt. “Early results for the fourth quarter of the year show preliminary data for October at a new record high for credit card debt in the month, in absolute terms.”
Bidenomics is working, except for people who buy things or borrow money.