{"id":55115,"date":"2024-05-31T09:06:28","date_gmt":"2024-05-31T13:06:28","guid":{"rendered":"https:\/\/www.rightwinggranny.com\/?p=55115"},"modified":"2024-05-31T09:06:28","modified_gmt":"2024-05-31T13:06:28","slug":"the-root-causes-of-the-current-inflation","status":"publish","type":"post","link":"https:\/\/www.rightwinggranny.com\/?p=55115","title":{"rendered":"The Root Causes Of The Current Inflation"},"content":{"rendered":"

On Wednesday, Breitbart<\/a> posted an article about the cause of the level of inflation Americans are currently dealing with.<\/p>\n

The article quotes Neel Kashkari, who runs the Federal Reserve Bank of Minneapolis.<\/p>\n

The article reports:<\/p>\n

Surging immigration is keeping inflation and interest rates high, Fed honcho Neel Kashkari said in an interview<\/a> with the Telegraph<\/em>.<\/strong><\/p>\n

Kashkari, who runs the Federal Reserve Bank of Minneapolis, said he\u2019s not ready to consider cutting rates until he sees \u201cseveral months of real progress on inflation.\u201d The flood of immigrants, he argued, is hindering that progress.<\/strong><\/p>\n

U.S. borrowing costs are likely to stay put for \u201can extended period of time,\u201d Kashkari warned.<\/strong><\/p>\n

He\u2019s particularly freaked out by the booming demand for housing, which just won\u2019t cool off despite sky-high rates.<\/strong><\/p>\n

Kashkari\u2019s immigration bombshell runs directly contrary to the claims by the Biden administration and its allies that surging immigration is keeping down inflation by depressing wages.<\/strong><\/p>\n

Kashkari said that \u201cdramatic increase in immigration\u201d is boosting housing demand. More people working from home and years of underbuilding aren\u2019t helping either. It\u2019s a perfect storm that\u2019s keeping the housing market red-hot.<\/strong><\/p>\n

The article concludes:<\/p>\n

He (Kashkari) also noted that services inflation had been \u201cmuch stickier\u201d in the past few months, making it even tougher to justify rate cuts.<\/strong><\/p>\n

\u201cIn the second half of last year, we saw very rapid disinflationary progress, and that was comforting for all of us because the economy was strong and inflation was falling quickly. I expected and hoped that that was going to continue in the first quarter of this year [but] inflation has more or less moved sideways,\u201d Kashkari said.<\/strong><\/p>\n

Like other Fed officials, Kashkari said he needs solid proof that inflation is heading back to 2 percent before he\u2019s comfortable with rate cuts.<\/strong><\/p>\n

\u201cI want to see evidence that inflation is headed well back down towards the 2 percent target. I\u2019m not saying that we have to get all the way back down to 2 percent before we start cutting, but I need to be convinced that that\u2019s where we\u2019re headed before I would be comfortable normalizing interest rates,\u201d he said.<\/strong><\/p>\n

Rate cuts could result in people feeling better about the economy (a good thing in an election year), but they could also create even more inflation.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

On Wednesday, Breitbart posted an article about the cause of the level of inflation Americans are currently dealing with. The article quotes Neel Kashkari, who runs the Federal Reserve Bank of Minneapolis. The article reports: Surging immigration is keeping inflation … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[13417,10348,6252,3428,7069,1399,8123,2862],"class_list":["post-55115","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-biden-administration","tag-breitbart","tag-breitbart-com","tag-economy","tag-federal-reserve","tag-immigration","tag-inflation","tag-minneapolis"],"_links":{"self":[{"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/posts\/55115","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=55115"}],"version-history":[{"count":1,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/posts\/55115\/revisions"}],"predecessor-version":[{"id":55116,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/posts\/55115\/revisions\/55116"}],"wp:attachment":[{"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=55115"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=55115"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=55115"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}