The Inflation Problem Is Worse Than We Feared

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Inflation Exceeds Expectations, Hits 9.1%

(Photo by Brandon Bell/Getty Images)

The latest Consumer Price Index report came out this morning, and while experts were afraid that inflation would hit a 40-year high of 8.8%, the reality was even worse.

U.S. consumer inflation rose to a new four-decade high at an annual rate of 9.1% in June, extending a year and a half stretch of persistently higher prices.
The consumer-price index’s rate of increase last month was the highest since December 1981, the Labor Department said Wednesday. It also eclipsed May’s annual rate of 8.6% that led Federal Reserve officials to shift to a faster pace of benchmark interest-rate increases in its campaign to bring down inflation.
The report likely keeps the Fed on track to raise its benchmark interest rate by 0.75 percentage point at its meeting later this month. Stocks dropped and bond yields jumped following the inflation report.
Core prices, which exclude volatile food and energy components, increased by 5.9% in June from a year earlier, slightly less than May’s 6.0% gain, the Labor Department said.

The Biden administration is pushing back on the numbers, saying the calculation is out-of-date amid falling gas prices.

Democrats Continue Ahead With Climate And Tax Agenda

Despite its questionable favorability and almost-certain negative impact on an already stressful economic situation, the Democrats in Washington D.C. are plowing ahead with their climate and tax agenda.

Politico reports that Schumer and Manchin have spoken more than a half-dozen times, mainly in person, as they keep negotiations going. Manchin has questioned whether the partisan bill is the right approach as inflation continues to rise. Manchin had this to say about his relationship with Schumer:
“We understand each other well enough … We can agree to disagree, we can agree to try and find a moderate middle. He knows that I’m not in the base camp far to the left; that will never happen … He knows exactly where I’m at. Now whether they can get there or whatever, we’ll see.”
As the far-left base of the Democratic Party continues to criticize Manchin, the West Virginia Senator is holding his ground and negotiating with the best interests of his constituents. Schumer and Manchin privately agreed on a $1.5 trillion iteration of the bill, but in December, Manchin pulled the plug on the spending bill.
Still, Schumer has been working overtime, attempting to ram the Biden agenda through, just in time, before the midterm elections.

Gavin Newsom Continues To Appear Like He's Running For President

Amid increasing speculation (and confirming poll numbers) that Democrats aren't excited about Round 2 of the Biden Administration come 2024, Gavin Newsom is appearing more and more like a presidential contender than a governor. Via the Washington Post:

The governor is in Washington this week to meet with Biden administration officials and members of Congress on issues he has sought action on — abortion rights, climate change and guns — and will also speak Wednesday as he accepts an interstate education group’s award on behalf of California, according to Newsom’s office.
The governor has said his calls for Democratic action are not meant to fault leaders like President Biden, and political observers doubted Newsom would challenge Biden if he ran. Advisers pointed to Newsom’s insistence he has “subzero interest” in a presidential bid, though one of them would not rule out a run even if a fellow Californian, Vice President Harris, is a candidate.
Biden’s stated intent to run for a second term has not quelled some calls in the party for a new direction, with growing concerns about his low approval ratings and his ability to run again in his 80s. Liberal activists launched a website this week urging him to step aside. Amid this rising angst, some Democrats see Newsom as an increasingly intriguing presidential prospect if there is an open primary.

Headlines Of The Day

How Banks, Biden, and the United Nations Will Soon Make the Global Energy Crisis Much Worse (RedState)
DeSantis, eyeing 2024, holds Florida conference with key GOP governors and candidates (CBS News)
Baton Rouge judge blocks Louisiana's abortion ban again; hearing set Monday (The Advertiser)
Company behind Driftwood LNG will pay $125 million for Haynesville Shale natural gas (The Advocate)
Starbucks Permanently Closing Some Stores in Liberal Cities over Safety Concerns (National Review)

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