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| Economy |
| Core inflation rate drops to 7-month low of 2.6%, interest rates down 1/2 point due to cuts in gov’t spending |
| 2025-03-01 |
| [THEPOSTMILLENNIAL] The Fed's preferred method to measure inflation, or the core personal consumption expenditures, has dropped to a 7-month low of 2.6 percent, however, it is still above the 2 percent inflation rate that is widely considered to be the target inflation rate in the US economy. According to Forbes, the Commerce Department reported that the core inflation rate used by the Federal Reserve, which excludes food and energy, was at 2.6 percent year-over-year as compared to January 2024. There was also an increase of 0.3 percent core inflation from December 2024 to January 2025. This met forecasts that predicted a 2.6 percent inflation rate and is the lowest since June. Overall inflation was 3 percent year-over-year as compared to 2024. The numbers were in line with what was expected with numbers from the Dow Jones estimate, according to CNBC. Since the inflation rate has still not settled around the 2 percent mark, the Fed is likely to hold steady on the interest rates between the 4.5-4.6 percent range. Interest Rates Are Falling Thanks to Cuts in Government Spending [PJMedia] "The 10-year interest rate has fallen by half a percentage point in the past month—from approximately 4.8 percent to 4.3 percent," reports Reason's Jared Dillion. The U.S. federal budget deficit has driven interest rates ever higher over the last five years. 2024: $1.83 trillion, the fifth year in a row with a deficit over $1 trillion 2023: $1.7 trillion 2022: $1.375 trillion 2021: $2.78 trillion 2020: $3.13 trillion, the largest in U.S. history. |
| Posted by:Fred |
| #3 Fixed Income, and a 2.3% COLA in this economy. Retirees are screwed over. Screwed over by the Democrats and what they did with their Stolen election and how they wasted $2+ Trillion overspending. |
| Posted by: NN2N1 2025-03-01 10:54 |
| #2 At least Biden destroyed Keynesian mythology. |
| Posted by: Super Hose 2025-03-01 08:41 |
| #1 Federal bonds and interest rates move in an "inverse" relationship. IF we can cut billions of "demand" for those Federal bonds, then the smaller "supply" for those bonds will raise prices. That, in turn, will drive interest rates down. |
| Posted by: Crusader 2025-03-01 02:03 |