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Just 36 months ago, Federal Reserve Chair Jerome Powell said low inflation — it had averaged just 1.7% for a decade — was the nation’s foremost economic challenge. That challenge
4.1%. inflation remains well above our longer run goal of 2%. total pce prices rose 63%, excluding the food and energy categories. core prices rose 4.9%. in the 12—month change came at above expectations. aggregate demand is strong, supply constraints have been larger and long lasting. price pressures have spread to a broad range of goods and services. the surge in prices that resulted from the russian invasion is boosting prices and creating additional upward pressure on inflation. in covid related lockdowns are exacerbating supply chain disruptions in china, likely. particularly for total ...
Inflation? >> yeah, great question. so the fed controls what's called the federal funds rate, and they can raise that as much as they want. that then feeds through capital markets to the cost of mortgage loans, the revolving credit card loans, the cost of borrowing for companies. the higher the cost, the less the household will spend on durable goods, the less they might try to buy a new home. what's hard is that has to happen to allow inflation to get under control, because the challenges of covid around the world snarling supply chains, those things are very difficult to change on the supply...
And prices aren't expected to ease any time soon. this week, we get the march consumer price index. economists forecast a year-over-year increase of 8.3% that would be the hottest reading since january of 1982. the federal reserve is trying to get inflation under control by raising interest rates. last week, stocks sold off as the fed hinted at even bigger, faster rate hikes. plus, the rapid reduction of its $9 trillion balance sheet. buff there is only so much the fed can do. >> obviously, the fed can't do anything about the contributors to food and energy inflation tied to russia's invasion ...
Do to actually provide some relief to the principle costs that the american families are facing. if you look at our build back better plan, what it really is, is about going at the principle costs that a typical household face necessary a month. what they're paying for childcare and healthcare and what housing costs are. to do that in a way that doesn't add to the aggregate demand of the economy but offset across time. if you do that you don't add to inflationary pressure but reduce people's costs. this bill would say to your viewers out there if you have a family with kids you won't pay more ...