{"id":1217080,"date":"2022-01-14T17:49:45","date_gmt":"2022-01-14T22:49:45","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1217080"},"modified":"2022-01-14T17:49:54","modified_gmt":"2022-01-14T22:49:54","slug":"the-dollar-drops-as-inflation-rises-heres-what-that-means-for-your-wallet","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-dollar-drops-as-inflation-rises-heres-what-that-means-for-your-wallet\/","title":{"rendered":"The Dollar Drops As Inflation Rises: Here\u2019s What That Means For Your Wallet"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fthe-dollar-drops-as-inflation-rises-heres-what-that-means-for-your-wallet%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1217080&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>As inflation in the United States reaches record highs, investors are losing confidence in the dollar.<\/p>\n<p>On Wednesday, the Bureau of Labor Statistics reported that in December consumer prices <a href=\"https:\/\/www.dailywire.com\/news\/breaking-inflation-rises-7-in-december-over-previous-year-fastest-rise-in-almost-40-years\">rose<\/a> by 7% over the previous year \u2014 the highest rate in roughly 40 years. Likewise, \u201creal average hourly earnings\u201d \u2014 which consider the effect of inflation \u2014 <a href=\"https:\/\/www.dailywire.com\/news\/in-2021-inflation-gave-the-typical-american-a-2-4-pay-cut\">decreased<\/a> by 2.4% from December 2020 to December 2021, starkly cutting the purchasing power of American consumers.<\/p>\n<p>Following the news, the ICE U.S. Dollar Index (DXY) \u2014 a measure of the currency against other global reserve assets \u2014 <a href=\"https:\/\/www.marketwatch.com\/story\/markets-are-in-wonderland-when-it-comes-to-inflation-and-the-fed-and-thats-sinking-the-u-s-dollar-11642104388\">hit<\/a> a two-month low, signaling a weakened dollar.&nbsp;<\/p>\n<p>What does this phenomenon imply for Americans enduring a rough-and-tumble post-COVID economy? As energy analyst and <a href=\"https:\/\/www.foxbusiness.com\/markets\/dollar-inflation-fed-economy-forex\">Fox Business<\/a> contributor Phil Flynn explained:<\/p>\n<p>The most direct correlation in that would be the price of commodities. On the global market, almost all major commodities from energy, agriculture and metals are priced in dollars. If the dollar falters then it would take more dollars to buy the same amount of goods. That means that this blockbuster increase in consumer prices might look small in the future.<\/p>\n<p>In other words, Americans will see further erosion to their standard of living. However, a weak dollar may provoke monetary tightening from the Federal Reserve. Flynn continued:<\/p>\n<p>If the dollar does falter, then the Federal Reserve may be forced to take even more drastic actions to slow the rise. Instead of four or five rate hikes of a quarter-point, policymakers may be forced to shock and awe the market with a series of a full-point or larger increases to protect the integrity of the dollar.&nbsp;<\/p>\n<p>This potential emerging crisis with inflation and confidence in the dollar shows that printing money and runaway government spending has consequences. It also has big consequences for President Biden\u2019s \u201cbuild back better\u201d aspirations.&nbsp;<\/p>\n<p>Despite these concerns, progressive Democrats are <a href=\"https:\/\/www.dailywire.com\/news\/pramila-jayapal-fight-inflation-and-lower-costs-with-build-back-better\">sticking<\/a> dogmatically to Biden\u2019s landmark spending proposal.<\/p>\n<p>\u201cWe fight inflation by lowering costs for working people,\u201d Rep. Pramila Jayapal (D-WA) tweeted on Wednesday. \u201cAnd we lower costs by passing Build Back Better.\u201d<\/p>\n<p lang=\"en\" dir=\"ltr\">We fight inflation by lowering costs for working people. <\/p>\n<p>And we lower costs by passing Build Back Better.<\/p>\n<p>\u2014 Rep. Pramila Jayapal (@RepJayapal) <a href=\"https:\/\/twitter.com\/RepJayapal\/status\/1481377948653424645?ref_src=twsrc%5Etfw\">January 12, 2022<\/a><\/p>\n<p>\u201cFamilies are struggling with soaring prices on everyday essentials like groceries, gas, housing, and health care,\u201d Sen. Elizabeth Warren (D-MA) added. \u201cMeanwhile, big corporations are making record profits. We need to pass #BuildBackBetter and boost competition to lower prices.\u201d<\/p>\n<p lang=\"en\" dir=\"ltr\">Families are struggling with soaring prices on everyday essentials like groceries, gas, housing, and health care. Meanwhile, big corporations are making record profits. We need to pass <a href=\"https:\/\/twitter.com\/hashtag\/BuildBackBetter?src=hash&amp;ref_src=twsrc%5Etfw\">#BuildBackBetter<\/a> and boost competition to lower prices.<a href=\"https:\/\/t.co\/vERt6iOg7o\">https:\/\/t.co\/vERt6iOg7o<\/a><\/p>\n<p>\u2014 Elizabeth Warren (@SenWarren) <a href=\"https:\/\/twitter.com\/SenWarren\/status\/1481375025852727298?ref_src=twsrc%5Etfw\">January 12, 2022<\/a><\/p>\n<p>\u201cThe Build Back Better act addresses inflation by lowering child care, energy, housing and healthcare costs for everyday Americans,\u201d Rep. Hakeem Jeffries (D-NY) said. \u201cRepublicans talk about inflation. House Dems are doing something about it.\u201d<\/p>\n<p lang=\"en\" dir=\"ltr\">The Build Back Better act addresses inflation by lowering child care, energy, housing and healthcare costs for everyday Americans.<\/p>\n<p>Republicans talk about inflation.<\/p>\n<p>House Dems are doing something about it.<\/p>\n<p>\u2014 Hakeem Jeffries (@RepJeffries) <a href=\"https:\/\/twitter.com\/RepJeffries\/status\/1481267185083428866?ref_src=twsrc%5Etfw\">January 12, 2022<\/a><\/p>\n<p>Meanwhile, the Biden administration argued on Wednesday that it is \u201cmaking progress\u201d on inflation.&nbsp;<\/p>\n<p>\u201cToday\u2019s report\u2014which shows a meaningful reduction in headline inflation over last month, with gas prices and food prices falling\u2014demonstrates that we are making progress in slowing the rate of price increases,\u201d Biden said in a <a href=\"https:\/\/www.whitehouse.gov\/briefing-room\/statements-releases\/2022\/01\/12\/statement-by-president-biden-on-consumer-price-index\/\">statement<\/a>. \u201cAt the same time, this report underscores that we still have more work to do, with price increases still too high and squeezing family budgets.\u201d<\/p>\n<p>\u201cInflation is a global challenge, appearing in virtually every developed nation as it emerges from the pandemic economic slump,\u201d Biden continued. \u201cAmerica is fortunate that we have one of the fastest growing economies\u2014thanks in part to the American Rescue Plan\u2014which enables us to address price increases and maintain strong, sustainable economic growth. That is my goal and I am focused on reaching it every day.\u201d<\/p>\n<p>The Daily Wire is one of America\u2019s fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a <a href=\"https:\/\/www.dailywire.com\/subscribe\">member<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As inflation in the United States reaches record highs, investors are losing confidence in the dollar. On Wednesday, the Bureau of Labor Statistics reported that in December consumer prices rose by 7% over the previous year \u2014 the highest rate in roughly 40 years. Likewise, \u201creal average hourly earnings\u201d \u2014 which consider the effect of &#8230;<\/p>\n","protected":false},"author":99,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1217080","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1217080","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/99"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1217080"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1217080\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1217080"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1217080"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1217080"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}