Even Democrats can be right sometimes.
In 1992, while working as Bill Clinton’s campaign manager, Democrat political strategist James Carville famously said, “It’s the economy stupid!” when he got sick of being asked what the next presidential election was about.
He was right then, and he’s right now. That’s why things continue to grow darker for Joe Biden’s bid for re-election this fall. The economy sucks, no matter what Biden’s talking heads say about it.
On Tuesday, Federal Reserve Chair Jerome Powell made it clear that the elevated inflation rates hanging over the U.S. economy like a dark cloud getting ready to pour rain will most likely postpone interest rate cuts until later this year, according to the Associated Press.
This means those pesky high interest rates preventing people from buying houses and cars — to name just two big-ticket items — will be hanging around for a while.
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Participating in a panel discussion at the Wilson Center, Powell cautioned, “Recent data have clearly not given us greater confidence” inflation is under control and “instead indicate that it’s likely to take longer than expected to achieve that confidence.”
“If higher inflation does persist,” he continued, “we can maintain the current level of (interest rates) for as long as needed.”
“As long as needed” sounds like it could be a very long time indeed.
Fed’s Powell: Elevated inflation will likely delay rate cuts this year https://t.co/nu2U5oboDX
— KGW News (@KGWNews) April 17, 2024
Without clear evidence that inflation is coming under control, Powell’s remarks indicate the central bank may carry out fewer than the three quarter-point reductions the Fed forecast in March.
When asked directly about the Fed’s March 7 comments to Congress that it was “not far” from gaining the confidence needed to cut rates, Powell dodged the question by saying his “main message” was that the U.S. central bank needed more data before it could change policy, according to Reuters.
“It’s appropriate for us to be careful,” Powell said, before citing the ongoing strength found in the continuing growth of the economy and the job market.
The average person, I suspect, tuned out the Feds when they got tired of hearing how great the economy was after going to the grocery store to buy food or the gas station to fuel up. Everything keeps costing more.
Bidenomics fans love to say how inflation rates are shrinking. What they don’t tell you is that prices aren’t going up as fast as they were during its heights in 2022 — but they are still going up.
By Powell’s admission, the Feds do not yet have inflation under control. It looks like it’s going to stay that way for a while.
And yet Biden continues singing that the economy is just fine and dandy. He went so far as to say, “America has the best economy in the world,” on NBC’s “Today” show earlier this month. Getting people to buy into his optimism is key to his re-election campaign strategy.
But the economy isn’t as keen as Biden and his camp would like people to believe, and the people don’t need anyone to tell them. They know it by living in the world. Prices are outrageous and they aren’t getting any better. In fact, they keep getting worse.
Should the Federal Reserve be audited?
On Sunday, The Western Journal published a commentary titled, “7 Devastating Economic Stats that Prove the Biden Economy Is Failing the American People.” Among the statistics were the things that people already know about as an average Joe living in America.
Gas prices are up 14 percent this year alone, according to ABC News. Eviction rates have spiked 78.6 percent since 2021, according to the Associated Press. If you’ve been kicked out of your apartment because you can’t afford the rent and are forced to live in your car but can’t afford any gas — well, you get the picture. Desperate people do desperate things.
Statistics like these are there for those who feel like they may be going crazy, because Democrats are trying to do what they do best: gaslight the American public by telling them over and over the economy is booming. When the message doesn’t jibe with reality, it’s best to go with reality. If you need some facts to back up your lived experience, it’s best not to look to the Dems.
Carville was right: It is about the economy. High interest rates impact the entire economy, and not for the better. Americans know this. They’re living it. Trying to get them to ignore reality with glib talk about a rosy make-believe world doesn’t bode well for Lying Joe Biden.
It may even kill Biden‘s bid for re-election in 2024.
