Consumer Prices Rose at a 5.5 Percent Annual Pace last 3 months

[papau]

Inflation Threat?? Should FED raise rates more than 0.25% if they really believe the GDP growth numbers, the job creation numbers, and the current inflation rate. Shouldn't they go up 0.50% if they believe the numbers?? Or are all Greenspan/Bush numbers bullshit?

Should we worry about Greenspan/Bush credibility?

http://abcnews.go.com/sections/business/US/inflation_threat_CSM_040617.html

Consumer Prices Rose at a 5.5 Percent Annual Pace the Past Three Months By Ron Scherer The Christian Science Monitor

N E W Y O R K, June 17, 2004 — Consumer prices have risen at a 5.5 percent annual pace for the past three months, rippling from plywood to dairy section. <snip>

Since January, buying a $10,000 used car has cost about $320 more. Don't even mention the price of anything sold by the gallon.

If you think things are getting more expensive, you're right. While two months ago jobs were the biggest worry, inflation is now emerging as one of the main threats to the US economy.

This was reaffirmed Tuesday when the US Labor Department reported consumer prices rose 0.6 percent in May — the largest increase since January 2001. Over the past three months, consumers have seen prices rise 5.5 percent on an annualized basis — the highest inflation rate since the late 1990s.<snip>

"The longer the (food/energy) price stays up, the greater the impact on the whole economy," says Sung Won Sohn, chief economist at Wells Fargo Banks in Minneapolis. "Maybe we're at a point where the Fed starts to look at the overall inflation rate."<snip>

[T Roosevelt]

1. Of course they'll rise

but not until November silly...

[seasat]

2. And median wage growth has been stagnant,

Unlike the late 90's under Clinton so the inflation affects the consumer that much more.

Over the past three months, consumers have seen prices rise 5.5 percent on an annualized basis — the highest inflation rate since the late 1990s.

[stevebreeze]

8. wage costs( what the employers pay not what the workers get) 4%

this does not of course count the rise in health care costs to employees. Wages are not stagnant but dropping in real terms.

[Yavin4]

3. Welcome To The Downside Of Historically Low Interest Rates

Greenspan is a Bush hack. In the late 90s, whenever there was a whiff of inflation, he'd raise rates by half point or more. Today, when there's real evidence of inflation, he sits on his hands. Why? Gotta get monkey boy president a second term.

[swinney]

4. Interest Rate Hike by Fed before election?

odds 50 to 1.

Repug Greenspan will not allow it.

It was ok to have 13 interest rate hikes for Clinton.

[tritsofme]

6. There will be a hike on Wednesday,

you can mark my word on that much.

Now its a matter of whether it is 25 basis points or 50.

[swinney]

5. "Real" wage hikes will be negative. Like RR years.

[tritsofme]

7. Q1 Chain Deflator at 2.9%

ouch

[huellewig]

9. This is very real.

My brother-in-law went to buy some 2" conduit and the price had doubled in the last month (30$ for 10 feet to 60$ for ten feet.). Everything has jumped in price. Since the bid has been placed he is losing money on jobs that were profitable a few months ago.

I hope the kids like Ramen.

Electricians are getting fucked in every hole it seems.