{"id":2012101,"date":"2023-08-25T14:11:01","date_gmt":"2023-08-25T18:11:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-will-move-to-nearly-3-percent-by-2024-philadelphia-fed-president\/"},"modified":"2023-08-25T14:11:01","modified_gmt":"2023-08-25T18:11:01","slug":"inflation-will-move-to-nearly-3-percent-by-2024-philadelphia-fed-president","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-will-move-to-nearly-3-percent-by-2024-philadelphia-fed-president\/","title":{"rendered":"Inflation Will Move to Nearly 3 Percent By 2024: Philadelphia Fed President"},"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\">24<\/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%2Finflation-will-move-to-nearly-3-percent-by-2024-philadelphia-fed-president%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=2012101&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--><div data-post-content=\"true\" class=\"post_content\" id=\"post_content\">\n<p>Philadelphia Federal Reserve Bank President Patrick Harker said that inflation will move towards 3 percent next year and expects to see interest rates remain \u201csteady\u201d for the remainder of 2023.<\/p>\n<p>In July 2023, the 12-month consumer price index (CPI), a measure of annual inflation, was 3.2 percent, down from 8.5 percent a year back, and 5.4 percent two years ago. In an interview with CNBC on Thursday, Mr. Harker said that inflation will be \u201cat or slightly near 3 percent\u201d in 2024, with the rate \u201cmoving slowly to 2 [percent] in 2025.\u201d<\/p>\n<p>\u201cWe see it moving toward trend growth in GDP. And unemployment ticking up, again, in the 4-ish range, but not significantly more than that.\u201d<\/p>\n<div class=\"shortcode\">\n<div class=\"border-comp-divider mb-4 mr-4 w-full max-w-[500px] border px-5 py-4 text-[16px] leading-[20px] text-[#262626] md:float-left\">\n<div class=\"mb-3 font-sans text-[16px] font-semibold uppercase leading-[19px] text-[#2F2F2F]\">Related Stories<\/div>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\"><a href=\"http:\/\/www.theepochtimes.com\/article\/jerome-powell-warns-federal-reserve-could-keep-raising-interest-rates-in-inflation-fight-5480665\">Powell Warns Fed May Continue to Raise Interest Rates as Inflation Is &#8216;Too High&#8217;<\/a><\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">8\/25\/2023<\/div>\n<\/div>\n<div class=\"shrink-0 basis-[120px]\"><a href=\"http:\/\/www.theepochtimes.com\/article\/jerome-powell-warns-federal-reserve-could-keep-raising-interest-rates-in-inflation-fight-5480665\"><\/a><\/div>\n<\/div>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\"><a href=\"http:\/\/www.theepochtimes.com\/article\/inflation-driven-shift-from-grocery-store-to-dollar-chains-could-have-negative-impact-on-health-expert-5479954\">Inflation-Driven Shift From Grocery Store to Dollar Chains Could Have Negative Impact on Health: Expert<\/a><\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">8\/24\/2023<\/div>\n<\/div>\n<div class=\"shrink-0 basis-[120px]\"><a href=\"http:\/\/www.theepochtimes.com\/article\/inflation-driven-shift-from-grocery-store-to-dollar-chains-could-have-negative-impact-on-health-expert-5479954\"><\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>As to what the Fed will do with its benchmark interest rates, Mr. Harker expects it to stay \u201csteady throughout the rest of this year.\u201d<\/p>\n<p>\u201cThen we\u2019ll see all the data evolve. If we see inflation coming down quicker than we expect\u2014and again, this is what I\u2019m hearing from the soft data I\u2019m getting from my contacts\u2014then we might cut sooner rather than later. But I think we have to let that play out.\u201d<\/p>\n<p>President Biden has characterized the current low inflation as a success. On Aug. 16, during the first anniversary of the Inflation Reduction Act (IRA), President Biden said that inflation \u201cis now at the lowest point it\u2019s been in two years.\u201d<\/p>\n<div class=\"shortcode\">\n<div class=\"lazyload-wrapper\">\n<div class=\"lazyload-placeholder\"><\/div>\n<\/div>\n<\/div>\n<p>While this is true, the fact is that inflation is currently low when only measured against the high inflation rate of the past two years. Compared to the inflation when President Biden came to power, the present rate is way higher.<\/p>\n<p>The July 2023 inflation rate of 3.2 percent is significantly down from the peak of 9.1 percent in June 2022. But the rate is still more than double the 1.4 percent in January 2021 when President Biden assumed office.<\/p>\n<p>In an Aug. 16 press release, Alfredo Ortiz, president and CEO of Job Creators Network, slammed the first anniversary of the IRA as \u201cnothing to celebrate,\u201d pointing out that prices of goods and services have \u201cincreased significantly\u201d since the Act was passed.<\/p>\n<p>\u201cWhile the inflation rate has moderated due to aggressive Federal Reserve action, today\u2019s price increases are occurring on a much higher price base,\u201d he pointed out.<\/p>\n<p>\u201cEveryone sees these higher prices in their everyday lives as they struggle to pay their bills. As a result, their real wages and standards of living decline.\u201d<\/p>\n<h2>Americans Struggling With Inflation<\/h2>\n<p>While President Biden touts having lowered inflation over the past two years, Americans are today forced to spend more money to buy the things they need.<\/p>\n<p>In an Aug. 10 <a href=\"https:\/\/twitter.com\/Markzandi\/status\/1689626766875254786\" target=\"_blank\" rel=\"noopener\">post<\/a> on X, economist Mark Zandi pointed out that high inflation over the past two years has done \u201clots of economic damage.\u201d<\/p>\n<p>\u201cDue to the high inflation, the typical household spent $202 more in July than they did a year ago to buy the same goods and services. And they spent $709 more than they did [two] years ago,\u201d he said.<\/p>\n<div>\n<figure style=\"width:600px\" class=\"alignnone\"><figcaption>Federal Reserve Board Chairman Jerome Powell speaks during a news conference after a Federal Open Market Committee meeting at the Federal Reserve in Washington, on July 26, 2023. (Alex Wong\/Getty Images)<\/figcaption><\/figure>\n<\/div>\n<p>This month, the Federal Reserve Bank of San Francisco <a href=\"https:\/\/www.theepochtimes.com\/article\/san-francisco-fed-warns-that-americans-are-running-out-of-excess-savings-this-quarter-5475140\" target=\"_blank\" rel=\"noopener\">warned<\/a> that Americans were burning through the excess savings they had accumulated during the pandemic.<\/p>\n<p>Citizens began to withdraw from their stimulus-era savings more rapidly beginning last year amid skyrocketing inflation.<\/p>\n<p>&#8220;Our updated estimates suggest that households held less than $190 billion of aggregate excess savings by June,\u201d said San Francisco Fed researchers Hamza Abdelrahman and Luiz Oliveira. \u201cWe estimate that these excess savings are likely to be depleted during the third quarter of 2023.\u201d<\/p>\n<p>The depletion of savings among American citizens removes a critical safety net that had enabled millions of people to remain monetarily solvent during a period of high inflation.<\/p>\n<h2>Inflation Driven By Wages and Services<\/h2>\n<p>The current 3.2 percent inflation rate is way about the Federal Reserve\u2019s target of 2 percent. The slowdown in price growth over the past months has been driven by factors like falling gas prices and easing supply chain bottlenecks.<\/p>\n<p>Now, prices are being driven up by the cost of services, which includes categories like restaurant meals, auto insurance, dental care, and concerts. An increase in the cost of such services often reflects rising wages of employees that tend to be passed down to customers.<\/p>\n<p>\u201cEnergy prices are off, commodity prices off, core goods fell,\u201d Kristin Forbes, an economist at MIT, said in an interview with the AP. \u201cThat\u2019s the quick, easy stuff. What\u2019s left is this underlying wage-service inflation. And that\u2019s the part that\u2019s harder to slow down and will take longer.\u201d<\/p>\n<p>The rising inflation rates had led to the Fed hiking its benchmark interest rates through last year,<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Philadelphia Federal Reserve Bank President Patrick Harker said that inflation will move towards 3 percent next year and expects to see interest rates remain \u201csteady\u201d for the remainder of 2023.In July 2023, the 12-month consumer price index (CPI), a measure of annual inflation, was 3.2 percent, down from 8.5 percent a year back, and 5.4<\/p>\n","protected":false},"author":186,"featured_media":2012102,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2012101","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2012101","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\/186"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2012101"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2012101\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2012102"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2012101"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2012101"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2012101"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}