Global stock markets took a bit of a battering yesterday, with the Dow Jones posting its biggest one day fall since October. The US Federal Reserve issued a slightly more downbeat assessment when it left its policy stance unchanged last night, with interest rates near zero, and monthly bond purchases seriously down.
After Biden’s November election result, U.S. consumer prices increased solidly in December amid a surge in the cost of gasoline.
The Labor Department said on Wednesday its consumer price index increased 0.4% last month after gaining 0.2% in November. An 8.4% jump in gasoline prices accounted for more than 60% of the rise in the CPI. In the 12 months through December the CPI advanced 1.4% after increasing 1.2% in November alone.
Last month’s CPI readings were in line with economists’ expectations. The CPI rose 1.4% in 2020. That was the smallest yearly gain since 2015 and was a deceleration from 2.3% in 2019.
The CPI increased at a 1.7% average annual rate over the last 10 years.
Excluding the volatile food and energy components, the CPI edged up 0.1% after climbing 0.2% in November. The so-called core CPI was restrained by decreases in the prices of used cars and trucks, recreation, airfares and health care which has massaged the figures somewhat.
Overall, Bidens decisions are not helping an economy already struggling with the effects of Covid 19. The new Biden/Democrat War in Syria will only put more strain on the American Taxpayers finances (while risking young american lives) as will his cancelling of the Border Wall and the XL Pipeline. Meanwhile Warren Buffet (possibly the Democrats largest Donor) will do very well thank you, making over 2 billion a year from transporting the XL pipeline oil by his train company.