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Tumble Tuesday: stock markets plummet, cost of food sees greatest jump since 1979

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Joe Biden

“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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Economy

NYC bill trying to repeal ‘sanctuary city’ laws put in place by liberal Mayor Bill de Blasio

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New York lawmakers are introducing a bill this week to undo “sanctuary city” laws approved from 2014-2018 under then-Mayor Bill de Blasio, a Democrat. Council members Robert Holden (D-Queens) and Joe Borelli (R-Staten Island) told The New York Post they’ll introduce the bill Thursday.

Among the laws to be reversed include the prohibiting of the NYPD, and Correction and Probation departments from cooperating with U.S. Immigration and Customs Enforcement agents unless the cases involve suspected terrorists or serious public safety risks. It would also reverse rules prohibiting city agencies from partnering with ICE to enforce federal immigration laws.

“Sanctuary city laws put all New Yorkers, both immigrants and longtime residents, in danger by preventing the NYPD and DOC from working with ICE,” said Holden, a moderate Dem. “We do not need to import criminals, and only 23 years since 9/11, we have forgotten the deadly consequences of poor interagency communication. We must repeal these laws immediately.”

“Like most things in New York, sanctuary city policy is a social experiment gone off the rails,” said Borelli. “All the problems with these local laws came out during the public-hearing process, but the Council just stepped harder on the gas pedal.”

In February, Mayor Eric Adams called for the rules to be loosened so migrants “suspected” of “serious” crimes could also be turned over to ICE — as they once were under sanctuary city policies implemented as early as 1989 under ex-mayors Ed Koch and Michael Bloomberg.

Among public reasons for the push is the murder of Georgia nursing student Laken Riley.  If it wasn’t for the sanctuary city policies, Riley is among other deaths that could have been prevented if the policies were not in place, Holden and other critics have said.

The 22-year-old was found dead Feb. 22 on the University of Georgia’s campus, six months after her alleged killer Jose Antonio Ibarra, 26, was arrested in Queens and charged with endangering a child.

The Post explains of the case:

The NYPD had no choice but to cut the Venezuelan-born Ibarra loose — instead of turning him over to federal immigration officials — because he didn’t have any major crime convictions.

Council Speaker Adrienne Adams shot down the mayor’s idea just one day later, saying she and the rest of the Council’s progressive Democratic majority wouldn’t be considering any rule changes. The bill introduced this week is also likely to face objections from the Council’s left-wing Democratic majority.

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