Relevant and even prescient commentary on news, politics and the economy.

How “FHFA-CPI” using house prices rather than OER shows a sharp deceleration in inflation

How “FHFA-CPI” using house prices rather than OER shows a sharp deceleration in inflation  – by New Deal democrat Paul Krugman made another foray into the “inflation is mostly gone” genre over the weekend with a thread on Mastodon that largely relied on the following graph: concluding that “[A]t this point the burden of proof lies on […]

Understanding Inflation using Gasoline Prices

Seems that gas, fuel, gasoline is being used as a marker to understand just how horrible we have it as a result of the current inflation. It’s just sooooooooooo terrible. I’ll just say this. As a marker of inflation and our personal economic experience all it shows is how terrible we are at remembering. Unfortunately […]

The WASDE Is Out, May the Kernels Fall Where They Will

USDA has now dropped the World Agricultural Supply and Demand Estimates in the much awaited October reporting. In a simple one liner, here is the gist of it – lower soy and corn yields this year (drought and lack of fertilizer – we saw this one coming), but wheat supply down, but higher than last […]

Will the Inflation Reduction Act (IRA) Reduce Inflation?

Will the Inflation Reduction Act (IRA) Reduce Inflation?, Econospeak  Probably not, but it also will probably not increase it either. This is the judgment of the Congressional Budget Office and also the Penn Wharton Budget Model, as well as libertarian economist Tyler Cowen of George Mason, who is critical of much of its content.  It […]

Sunday Morning Quote – Joe tells It All

Joe Manchin came to the table in agreement with the new IRA provisions. This left Senator Sinema as the only one blocking the Inflation Reduction Act. To reach an agreement, Democrats were forced to narrow a key provision of the recently enacted Inflation Reduction Act because of Sen. Kyrsten Sinema, D-Ariz. “We had a senator from Arizona […]

Inflation, Should the Fed continue to raise rates – and whether it is “behind the curve”

A note on inflation and whether the Fed should continue to raise rates – and whether it is “behind the curve” No important economic releases today (july 18), and almost no reporting by States as to COVID counts over the weekend, so let’s back up and take a look at something that’s been simmering on […]

Explaining Away Stagflation, Inflation, and the Fed

I have been waiting for an explanation on inflation like this to break loose from a credible source other than myself(?). If you have been around long enough, you kind of know what is going to take place once the Fed starts to increase Fed rates. You may have been around in the seventies when […]

Inflation, tariffs, and Iran

(Dan here…lifted from comments) Barkley Rosser writes: There are two things Trump did that added to inflation that Biden has somehow not undone yet. One of them is reversing the Trump tariffs, which he clearly fears doing because of opposition by Organized Labor and many white working-class voters in the crucial Rust Belt states. Some […]