<p>Former Treasury Secretary and National Economic Council director <a href="https://www.dailywire.com/topic/larry-summers" target="_blank" rel="noopener">Lawrence Summers</a> warned on Tuesday that the United States still has a “serious inflation problem.”</p>
<p>The Consumer Price Index (CPI) rose 8.3% between August 2021 and August 2022, according to a <a href="https://www.bls.gov/news.release/cpi.nr0.htm" target="_blank" rel="noopener">report</a> released on Tuesday by the Bureau of Labor Statistics. The reading marks a decline from the 8.5% year-over-year rate seen in July and the 9.1% year-over-year rate seen in June as gasoline <a href="http://dailywire.com/topic/inflation" target="_blank" rel="noopener">prices</a> continue to fall, although month-over-month prices for food, shelter, and medical services continued to tick upward.</p>
<p>Indeed, core inflation — the price level increase for all items except for food and energy — rose by 0.6% in August, marking a faster rate of increase than July and producing a 6.3% year-over-year rate. Analysts were expecting the measure to rise 0.3%.</p>
<p>“Core inflation is higher this month than for the quarter, higher this quarter than last quarter, higher this half of the year than the previous one, and higher last year than the previous one,” Summers commented on social media.</p>
<p>Summers remarked that median inflation — an alternative metric of core inflation favored by those who once said inflation was “transitory” — rose to “its highest ever reading.” Indeed, median inflation rose from 6.3% in July 2022 to 6.7% in August 2022, according to <a href="https://www.clevelandfed.org/en/our-research/indicators-and-data/median-cpi.aspx" target="_blank" rel="noopener">data</a> from the Federal Reserve Bank of Cleveland.</p>
<p>Among other officials, Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen once argued that rising price levels were a temporary result of demand increases that followed widespread government lockdowns. Yellen <a href="https://www.dailywire.com/news/janet-yellen-admits-she-was-wrong-about-inflation-being-small-risk" target="_blank" rel="noopener">admitted</a> earlier this year, however, that she was incorrect about transitory inflation.</p>
<p>&#8220;I think I was wrong then about the path that inflation would take,” Yellen said during an interview with CNN. “As I mentioned, there have been unanticipated and large shocks to the economy that have boosted energy and food prices and supply bottlenecks that have affected our economy&#8230; But we recognize that now.”</p>
<p>Despite the poor inflation news, President Joe Biden claimed victory on Tuesday in the “essentially flat” headline figures. “It will take more time and resolve to bring inflation down, which is why we passed the Inflation Reduction Act to lower the cost of healthcare, prescription drugs and energy,” he said in a <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2022/09/13/statement-of-president-joe-biden-on-consumer-price-index-in-september/" target="_blank" rel="noopener">statement</a>. “And my economic plan is showing that, as we bring prices down, we are creating good paying jobs and bringing manufacturing back to America.”</p>
<p>Meanwhile, Summers said that the odds of inflation falling to 2% — the official long-term target of the Federal Reserve — without unemployment spiking above 4.5% is “highly implausible,” while even interest rates above 4% would be insufficient to restore normal price level increases.</p>
<p>The unemployment rate <a href="https://www.dailywire.com/news/unemployment-rate-edges-upward-for-the-first-time-in-months-as-more-americans-return-to-work" target="_blank" rel="noopener">increased</a> for the first time in months to 3.7% in August 2022, even as more Americans returned to work, according to <a href="https://www.bls.gov/news.release/empsit.nr0.htm" target="_blank" rel="noopener">data</a> from the Bureau of Labor Statistics. As inflation remains elevated, Powell and other policymakers still intend to bring inflation to historical levels.</p>
<p>“Price stability is the responsibility of the Federal Reserve and serves as the bedrock of our economy,” Powell recently <a href="https://www.dailywire.com/news/jerome-powell-vows-to-restore-price-stability-even-though-federal-reserve-must-first-bring-some-pain" target="_blank" rel="noopener">said</a> at the central bank’s annual symposium in Jackson Hole, Wyoming. “Without price stability, the economy does not work for anyone. In particular, without price stability, we will not achieve a sustained period of strong labor market conditions that benefit all. The burdens of high inflation fall heaviest on those who are least able to bear them.”</p>

<script async src="https://www.instagram.com/embed.js"></script>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<script async src="https://www.tiktok.com/embed.js"></script><div data-widget-host="revcontent" data-pub-id="165152" data-widget-id="290588"></div><script src="https://delivery.revcontent.com/165152/290588/widget.js"></script>

‘A Serious Inflation Problem’: Top Obama Economist Sounds The Alarm Over Prices As White House Celebrates

CONTINUE READING

Bud Light Sales Continue To Plummet, May Soon Lose Status As Number-One Beer

‘Profoundly Christian’: Former Head Of Anglican Church Presses British Government To Endorse Assisted Suicide

Ben Shapiro Reacts To Debt Limit Deal, Hits Both Democrats And Republicans Over Spending Habits

‘The Chosen’ Defends Pride Flag Spotted On Set: ‘Let The Show Speak For Itself’

Chick-Fil-A Faces Backlash As Their Diversity Efforts Resurface, Other Woke Brands Take Beating

North Korea Sentenced Two-Year-Old To Life In Prison After Family Caught With Bible: State Department

News

Biden Administration

Economy

Inflation

Larry Summers

A video goes viral showing a baby being refused his mother by two gay "dads". This is just the tip of the iceberg, which is why we will have an important discussion today about surrogacy. 

Hour 1

The Matt Walsh Show

Ep. 1765 - This Video Is One Of The Worst Things I've Seen In A Long Time 

The Strait of Hormuz officially opens for business (kind of), the Pope makes “shocking” comments on immigration, and President Trump promises UFO disclosure at TPUSA. 


The Michael Knowles Show

Ep. 1956 -  Pope Leo's "SHOCKING" Immigration Comments EXPLAINED

A false miscreed has corrupted our leadership class.


The Andrew Klavan Show

Ep. 1275 - Dumb, Dumber and Progressive

President Trump announces a 10-day ceasefire between Lebanon and Israel, a murder-suicide involving former Democratic Lieutenant Governor Justin Fairfax shakes Virginia, and France and Britain hold a conference to secure the Strait of Hormuz – after the Iranian conflict ends. Get the facts first with Morning Wire.

- - -

Ep. 2738

- - -

Wake up with new Morning Wire merch: https://bit.ly/4lIubt3

- - -

Today's Sponsors:

Alliance Defending Freedom - Visit https://JoinADF.com/WIRE or text 'WIRE' to 83848 to learn more.

Pocket Hose - Text MORNING to 64000 to get a FREE pocket pivot and their 10-pattern sprayer with the purchase of ANY size Copper Head hose. Message and data rates may apply.

Morning Wire

U.S. Expands Hormuz Blockade & VA Fairfax Deaths Investigated | 4.17.26

U.S. Expands Hormuz Blockade & VA Fairfax Deaths Investigated | 4.17.26 [Member Exclusive]

A ceasefire goes into effect between Israel and Lebanon, a tragic murder-suicide rocks Virginia, and Dairy Queen deploys AI in the drive-thru. Get the facts first with Evening Wire.
- - -
Ep. 2737
- - -
Wake up with new Morning Wire merch: https://bit.ly/4lIubt3 
- - -
Today’s Sponsor:

Alliance Defending Freedom - Visit https://JoinADF.com/WIRE or text “WIRE” to 83848 to learn more.


Evening Wire: Lebanon Ceasefire Begins & Murder-Suicide Rocks VA | 4.16.26

The Pendragon Cycle

Menu

— News —

‘A Serious Inflation Problem’: Top Obama Economist Sounds The Alarm Over Prices As White House Celebrates