“The major stock market indexes tumbled on Tuesday, notching the worst one-day performance for stocks since June 2020, after a key measure of inflation came in worse than expected” reports National Review.
The Dow Jones Industrial Average dropped 1,276 points, or a 3.94 percent decline. The S&P 500 fell 4.32 percent, and Nasdaq experienced a 5.15 percent drop. The new figures raise concern among investors that the Federal Reserve will take an aggressive approach to combatting inflation that could send the U.S. economy into a recession.
Inflation for overall cost of food increased by 11.4%, the highest increase since May of 1979. The “food-at-home category, groceries” was up 13.5% year-over-year, the largest increase since March of 1979, according to Steve Reed, an economist at the U.S. Bureau of Labor Statistics (BLS).
The Bureau of Labor Statistics revealed that the Consumer Price Index (CPI) increased by 8.3 percent in August compared to the same time last year and increased 0.1 percent from the previous month.
“The rise was worse than the 8.1 percent increase that economists had expected, according to Dow Jones estimates” adds National Review.
“The month-to-month figure also came in worse than expected, with economists having predicted a -0.1 percent change to the CPI but instead the measure increased 0.1 percent.”
President Biden responded to the report on Tuesday saying the data “show more progress in bringing global inflation down in the US economy.”
“Overall, prices have been essentially flat in our country these last two months: that is welcome news for American families, with more work still to do,” he said, adding that gas prices have fallen, some grocery store price increases have slowed down and real wages are up.
He continued: “It will take more time and resolve to bring inflation down, which is why we passed the Inflation Reduction Act to lower the cost of healthcare, prescription drugs and energy. And my economic plan is showing that, as we bring prices down, we are creating good paying jobs and bringing manufacturing back to America.”
Despite its name, the University of Pennsylvania Wharton School found that the “Inflation Reduction Act” is “expected to be statistically indistinguishable from zero.”
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Gallup poll: GOP holds large advantage over Dems in economy, national security
A recent Gallup poll shows Americans overwhelmingly have faith in Republicans over Democrats when it comes to the economy. In fact, the GOP “holists largest advantage on the economy in over 30 years, with 53% of Americans trusting Republicans more than Democrats on the issue” writes the Daily Caller News Foundation.
The poll holds Republicans at a 14-point lead over Democrats for handling the economy better. “The GOP scored 10 points higher on the economy than last year, marking the largest margin between the two parties since 1991.”
Gallup’s publication of the poll is titled ‘Neither Party Well-Liked, but GOP Holds Advantage on Issues.’ It may not be a shock that “The two major political parties remain unpopular in the U.S., with 56% of Americans viewing the Republican Party unfavorably and 58% saying the same of the Democratic Party” but the GOP holds “historically ample leads.”
— Reagan Reese (@reaganreese_) September 26, 2023
“Fifty-three percent of Americans believe the Republican Party will do a better job of keeping the country prosperous over the next few years, whereas 39% choose the Democratic Party.”
“A slightly larger majority, 57%, have greater faith in the Republican Party to protect the country from international terrorism and military threats, while 35% favor the Democrats.”
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