{"id":2244587,"date":"2024-05-14T19:21:02","date_gmt":"2024-05-14T23:21:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-reserve-chair-admits-his-confidence-is-rattled-as-wholesale-inflation-unexpectedly-surges\/"},"modified":"2024-05-14T19:24:08","modified_gmt":"2024-05-14T23:24:08","slug":"federal-reserve-chair-admits-his-confidence-is-rattled-as-wholesale-inflation-unexpectedly-surges","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-reserve-chair-admits-his-confidence-is-rattled-as-wholesale-inflation-unexpectedly-surges\/","title":{"rendered":"Federal Reserve Chair acknowledges shaken confidence as wholesale inflation spikes unexpectedly"},"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\">22<\/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%2Ffederal-reserve-chair-admits-his-confidence-is-rattled-as-wholesale-inflation-unexpectedly-surges%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=2244587&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>Federal Reserve Chairman Jerome Powell expressed concern over <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-for-businesses-hits-highest-rate-since-2010\/\" title=\"Inflation For Businesses Hits Highest Rate Since 2010\">rising inflation levels<\/a>, noting \u200da 0.5 percent\u200d increase in wholesale prices in April, the largest jump since April \u200d2023. Powell highlighted the progress in reducing \u200bcore inflation but admitted to\u2063 higher-than-expected readings,\u200b necessitating patience and a\u2062 cautious approach to monetary \u200dpolicy. The Federal Reserve&#8217;s efforts to combat inflation include multiple interest rate hikes. Powell anticipates inflation levels to decrease gradually but acknowledges uncertainties in the economic outlook. The root causes of inflation, attributed to government policies and spending\u2062 decisions, are under scrutiny by economists and policymakers, emphasizing the importance of strategic economic measures to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/gayle-trotter-evaluating-corrupt-biden-on-his-weak-record\/\" title=\"Gayle Trotter: Evaluating Corrupt Biden on His Weak Record\">curb inflation effectively<\/a>.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<header> <a href=\"https:\/\/www.westernjournal.com\/commentary\/\">  Commentary <\/a>   <span> <\/p>\n<p><a href=\"https:\/\/www.westernjournal.com\/author\/randydesoto\/\">  <\/a> <\/p>\n<p> <span>   By <a href=\"https:\/\/www.westernjournal.com\/author\/randydesoto\/%20\"><span>Randy DeSoto<\/span><\/a> <\/span> <span>   May 14, 2024 at 4:03pm <\/span> <\/span>  <\/header>\n<section>\n<p>Federal Reserve Chairman Jerome Powell said Tuesday that his confidence has weakened that inflation is under control.<\/p>\n<p>His comments made at a bankers\u2019 conference in Amsterdam came the same day that the Labor Department <a href=\"https:\/\/www.bls.gov\/news.release\/ppi.nr0.htm\" target=\"_blank\" rel=\"noopener\">reported<\/a> that <a href=\"https:\/\/www.westernjournal.com\/wholesale-inflation-shatters-expectations-hits-highest-level-ever-recorded\/\" target=\"_blank\" rel=\"noopener\">wholesale prices<\/a> jumped 0.5 percent in April, the largest increase since April 2023.<\/p>\n<p>Wholesale prices are tracked by the <a href=\"https:\/\/www.bls.gov\/ppi\/home.htm\" target=\"_blank\" rel=\"noopener\">Producer Price Index<\/a>, which measures the selling prices producers of goods and services receive.<\/p>\n<blockquote>\n<p dir=\"ltr\" lang=\"en\">CNBC: Wholesale inflation rose MUCH more than expected in April.<\/p>\n<p>That\u2019s Bidenomics! <a href=\"https:\/\/t.co\/NbVUyS3zVP\">pic.twitter.com\/NbVUyS3zVP<\/a><\/p>\n<p>\u2014 RNC Research (@RNCResearch) <a href=\"https:\/\/twitter.com\/RNCResearch\/status\/1790398796767089081?\">May 14, 2024<\/a><\/p>\n<\/blockquote>\n<p>Powell first told the bankers that the U.S. economy is performing well, seeing strong growth of just over 3 percent last year, as unemployment remains below 4 percent and inflation has come down from its peaks in <a href=\"https:\/\/www.bls.gov\/charts\/consumer-price-index\/consumer-price-index-by-category-line-chart.htm\" target=\"_blank\" rel=\"noopener\">2022 and early 2023<\/a>.<\/p>\n<p>\u201cCore inflation got as high as 5.6 percent and is now at 2.8 percent, so it\u2019s down by half. That progress though really happened over the course of last year, particularly the second half of last year,\u201d the fed chief said.<\/p>\n<p><iframe loading=\"lazy\" title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/APu7ochzB8I?si=mljFq7R3WFHQQhOa\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p><a href=\"https:\/\/www.investopedia.com\/terms\/c\/coreinflation.asp\" target=\"_blank\" rel=\"noopener\">Core inflation<\/a> measures the change in prices of goods and services, but does not include food and energy costs, which have gone up considerably during President Joe Biden\u2019s time in office.<\/p>\n<p>Food prices are up <a href=\"https:\/\/www.foxbusiness.com\/economy\/started-going-inflation-biden-drives-costs-bread-butter-chicken\" target=\"_blank\" rel=\"noopener\">over 21 percent<\/a> since January 2021. Meanwhile the price of gasoline averaged <a href=\"https:\/\/www.eia.gov\/dnav\/pet\/hist\/LeafHandler.ashx?n=PET&#038;s=EMM_EPMR_PTE_NUS_DPG&#038;f=W\" target=\"_blank\" rel=\"noopener\">$2.40<\/a> per gallon that month, and is currently <a href=\"https:\/\/www.eia.gov\/dnav\/pet\/hist\/LeafHandler.ashx?n=PET&#038;s=EMM_EPMR_PTE_NUS_DPG&#038;f=W\" target=\"_blank\" rel=\"noopener\">$3.61<\/a>, or a 50.42 percent increase.<\/p>\n<div id=\"firefly-poll-container\">\n<p>Have you felt painful effects of inflation during Biden\u2019s presidency?<\/p>\n<\/p><\/div>\n<p>\u201cThe first quarter in the United States was notable for its lack of further progress on inflation. We had higher readings in the first quarter, and higher than we expected,\u201d Powell conceded.<\/p>\n<p>\u201cWe did not expect this to be a smooth road. But these [inflation readings] were higher than I think anybody expected,\u201d he continued. \u201cWhat that has told us is that we\u2019ll need to be patient and let restrictive policy do its work.\u201d<\/p>\n<p><a href=\"https:\/\/www.cnbc.com\/2024\/05\/14\/powell-says-inflation-has-been-higher-than-thought-and-expects-rates-to-hold-steady.html\" target=\"_blank\" rel=\"noopener\">CNBC<\/a> reported that the Federal Reserve has increased interest rates 11 times in recent years in its efforts to combat inflation.<\/p>\n<p>The purpose of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-reserve-delivers-bad-news-about-expectations-for-inflation-raising-interest-rates-report\/\" title=\"Federal Reserve Delivers Bad News About Expectations For Inflation, Raising Interest Rates: Report\">raising interest rates<\/a> is to make borrowing more expensive, which is designed to slow consumer spending and business investment, lowering demand and thereby bringing prices down, according to <a href=\"https:\/\/www.chase.com\/personal\/banking\/education\/basics\/how-does-raising-interest-rates-help-inflation#:~:text=When%20the%20central%20bank%20increases,demand%20and%20hopefully%20reducing%20inflation.\" target=\"_blank\" rel=\"noopener\">Chase Bank<\/a>.<\/p>\n<p>\u201cI expect that inflation will move back down on a monthly level, on a monthly basis to levels that were more like the lower readings we were having last year,\u201d Powell predicted.<\/p>\n<p>But he added the caveat, \u201cI would say my confidence [in that forecast] is not as high as it was, having seen these readings in the first three months of the year.\u201d<\/p>\n<p>\u201cWe\u2019re just going to have to see where the inflation data fall out,\u201d Powell said.<\/p>\n<p>What the fed chairman did not get into is how Biden\u2019s and the Democrats\u2019 big government, high spending policies are a primary driver of inflation.<\/p>\n<p>Former Trump and Reagan administration economist Larry Kudlow <a href=\"https:\/\/www.westernjournal.com\/trumps-top-economic-advisor-lays-exact-causes-inflation-biden-falsely-blaming-others\/\" target=\"_blank\" rel=\"noopener\">explained<\/a> in May 2022 as price spikes were hitting their highest, \u201cLook, you had prominent Democrat economists and Republican economists a year ago predict rising inflation because of huge social spending, aggregate demand increasing, deficit financing, too much borrowing and too much money printing.\u201d<\/p>\n<p>\u201cAnd then you had the war against fossil fuels at exactly the wrong time,\u201d he added, referring to <a href=\"https:\/\/www.westernjournal.com\/oil-group-takes-legal-action-biden-administration-unprecedented-drilling-restrictions\/\" target=\"_blank\" rel=\"noopener\">Biden\u2019s policy<\/a> of greatly restricting oil production on <a href=\"https:\/\/www.westernjournal.com\/gop-lawmakers-force-bidens-hand-oil-introduce-independence-russian-energy-act\/\" target=\"_blank\" rel=\"noopener\">federal lands<\/a> and offshore.<\/p>\n<p>In a February 2021\u00a0opinion piece\u00a0for <a href=\"https:\/\/www.washingtonpost.com\/opinions\/2021\/02\/04\/larry-summers-biden-covid-stimulus\/\" target=\"_blank\" rel=\"noopener\">The Washington Post<\/a>, former Clinton Treasury Secretary Larry Summers wrote that passing the $1.9 trillion American Rescue Plan as the economy was already well on its way to recovery would \u201cset off inflationary pressures of a kind we have not seen in a generation, with consequences for the value of the dollar and financial stability.\u201d<\/p>\n<p>After it passed the following month, Summers <a href=\"https:\/\/thehill.com\/policy\/finance\/544188-larry-summers-blasts-least-responsible-economic-policy-in-40-years\/\" target=\"_blank\" rel=\"noopener\">called it<\/a> \u201cthe least responsible macroeconomic policy we\u2019ve had in the last 40 years.\u201d<\/p>\n<p>Further, former Obama administration Treasury Department official Steven Rattner in a November 2021 article for <a href=\"https:\/\/www.nytimes.com\/2021\/11\/16\/opinion\/biden-inflation-spending-manchin.html\" target=\"_blank\" rel=\"noopener\">The New York Times<\/a> identified the American Rescue Plan as the \u201coriginal sin\u201d leading to the current high inflation rate.<\/p>\n<p>He pointed to Summers\u2019 warning, as well as \u201cmany others.\u201d<\/p>\n<p>\u201cWe worried that shoveling an unprecedented amount of spending into an economy already on the road to recovery would mean too much money chasing too few goods,\u201d Rattner wrote.<\/p>\n<p>The Democrats have since <a href=\"https:\/\/www.westernjournal.com\/fact-check-biden-loves-claim-cut-deficit-numbers-highlight-painful-truth\/\" target=\"_blank\" rel=\"noopener\">passed<\/a> the misnamed Inflation Reduction Act, with costs on green initiatives alone expected to exceed $1 trillion, and the $1 trillion dollar infrastructure bill, pouring more <a href=\"https:\/\/www.westernjournal.com\/biden-spending-hundreds-billions-fed-printed-money-not-cause-inflation\/\" target=\"_blank\" rel=\"noopener\">Federal Reserve printed money<\/a> into the economy.<\/p>\n<p>Kudlow said the answer for the nation\u2019s current fix is to implement the <a href=\"https:\/\/www.westernjournal.com\/reagan-succeeded-uniting-country-40-years-ago-president-since\/\" target=\"_blank\" rel=\"noopener\">policy<\/a> President Ronald Reagan did in the 1980s \u2014 known as supply-side economics.<\/p>\n<p>In other words don\u2019t just try to decrease demand through Fed interest rate hikes and less spending, work on increasing the supply of goods and services through pro-growth tax and regulatory polices.<\/p>\n<p>\u201cThe tax hikes and the environmental restrictions [under Biden] are suppressing the supply side of the economy \u2014 not enough goods. And the spending increases the demand side of the economy \u2014 too much cash,\u201d Kudlow said.<\/p>\n<p>\u201cIf you are going to spend more than you can produce, well, prices have to go up. And the obvious solution is to spend less and produce more.\u201d<\/p>\n<p>The proof is in the pudding. Inflation <a href=\"https:\/\/www.reaganfoundation.org\/ronald-reagan\/the-presidency\/economic-policy\/\" target=\"_blank\" rel=\"noopener\">dropped<\/a> from 13.5 percent in 1980 before Reagan took office to 4.1 percent in 1988.<\/p>\n<p>Powell of course does not have the power to make these policy changes, but the American people do by re-electing former President Donald Trump and a Republican-controlled Congress, who implemented Reagan-style <a href=\"https:\/\/www.westernjournal.com\/utter-devastation-biden-promises-trumps-tax-cuts-dead-parents-lose-thousands\/\" target=\"_blank\" rel=\"noopener\">economic policies<\/a> in Trump\u2019s first term and promise to do so again in his second.<\/p>\n<hr>\n<div>\n<p><b><i>A Note from Our Deputy Managing Editor:<\/i><\/b><\/p>\n<p><i><span>I heard a chilling comment the other day: \u201cWe don\u2019t even know if an election will be held in 2024.\u201d <\/span><\/i><\/p>\n<p><i><span>That wasn\u2019t said by a conspiracy theorist or a doomsday prophet. No, former U.S. national security advisor Lt. Gen. Michael Flynn said that to the founder of The Western Journal, Floyd Brown.<\/span><\/i><\/p>\n<p><i><span>Gen. Flynn\u2019s warning means that the 2024 election is the most important election for every single living American. If we lose this one to the wealthy elites who hate us, hate God, and hate what America stands for, we can only assume that 248 years of American history and the values we hold dear to our hearts may soon vanish.<\/span><\/i><\/p>\n<p><i><span>The end game is here, and as Benjamin Franklin said, \u201cWe must all hang together, or assuredly we shall all hang separately.\u201d<\/span><\/i><\/p>\n<p><i><span>All of this means that <\/span><\/i><a href=\"https:\/\/www.westernjournal.com\/subscribe\/?utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><i><span>without you<\/span><\/i><\/a><i><span>, it\u2019s over. We have the platform, the journalists, and the experience to fight back hard, but Big Tech is strangling us through advertising blacklists, shadow bans, and algorithms. Did you know that we\u2019ve been blacklisted by 90% of advertisers? Without direct support from you, our readers, we can\u2019t continue the fight.<\/span><\/i><\/p>\n<p><i><span>Can we count on <\/span><\/i><a href=\"https:\/\/www.westernjournal.com\/subscribe\/?utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><i><span>your support<\/span><\/i><\/a><i><span>? It may not seem like much, but a <\/span><\/i><a href=\"https:\/\/www.westernjournal.com\/subscribe\/?utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><i><span>Western Journal Membership<\/span><\/i><\/a><i><span>  can make all the difference in the world because when you support us directly, you cut Big Tech out of the picture. They lose control. <\/span><\/i><\/p>\n<p><i><span>A monthly Western Journal Membership costs less than one coffee and breakfast sandwich each month, and it gets you access to ALL of our content \u2014 news, commentary, and premium articles. You\u2019ll experience a radically reduced number of ads, and most importantly you will be vitally supporting the fight for America\u2019s soul in 2024.<\/span><\/i><\/p>\n<p><i><span>We are literally counting on you because without our members, The Western Journal would cease to exist. Will you <\/span><\/i><a href=\"https:\/\/www.westernjournal.com\/subscribe\/?utm_source=site&#038;utm_medium=westernjournalism&#038;utm_campaign=authorpitch\"><i><span>join us<\/span><\/i><\/a><i><span>  in the fight? <\/span><\/i><\/p>\n<p><i><span>Sincerely,<\/span><\/i><\/p>\n<p><i><span>Josh Manning<\/span><\/i><\/p>\n<p><i><span>Deputy Managing Editor<\/span><\/i><\/p>\n<p><i><span>The Western Journal<\/span><\/i><\/p>\n<\/p><\/div>\n<div id=\"author-info-44657\">\n<p><a href=\"https:\/\/www.westernjournal.com\/author\/randydesoto\/\">  <\/a> <\/p>\n<div>\n<p><label for=\"summary-tab-radio-44657\">Summary<\/label><label for=\"more-info-tab-radio-44657\">More<span> Biographical Information<\/span><\/label><label for=\"posts-tab-radio-44657\">Recent<span> Posts<\/span><\/label><label for=\"contact-tab-radio-44657\" onclick=\"if( typeof grecaptcha=='undefined' ) { let cap_s=document.createElement( 'script' ); cap_s.src='https:\/\/www.google.com\/recaptcha\/api.js?render=6LeJFcsUAAAAAPsIEqvB1EebWbZfqRUe6ebMpGy7'; document.body.appendChild( cap_s ); }\">Contact<\/label><\/p>\n<div>\n<p>Randy DeSoto has written more than 3,000 articles for The Western Journal since he joined the company in 2015. He is a graduate of West Point and Regent University School of Law. He is the author of the book &#8220;We Hold These Truths&#8221; and screenwriter of the political documentary &#8220;I Want Your Money.&#8221;<\/p>\n<\/p><\/div>\n<div>\n<p>  Birthplace <\/p>\n<p>  Harrisburg, Pennsylvania <\/p>\n<p>  Nationality <\/p>\n<p>  American <\/p>\n<p>  Honors\/Awards <\/p>\n<p>  Graduated dean&#8217;s list from West Point <\/p>\n<p>  Education <\/p>\n<p>  United States Military Academy at West Point, Regent University School of Law <\/p>\n<p>  Books Written <\/p>\n<p>  We Hold These Truths <\/p>\n<p>  Professional Memberships <\/p>\n<p>  Virginia and Pennsylvania state bars <\/p>\n<p>  Location <\/p>\n<p>  Phoenix, Arizona <\/p>\n<p>  Languages Spoken <\/p>\n<p>  English <\/p>\n<p>  Topics of Expertise <\/p>\n<p>  Politics, Entertainment, Faith <\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Federal Reserve Chairman Jerome Powell expressed wavering confidence in controlling inflation during a bankers&#8217; conference in Amsterdam. His comments coincided with a Labor Department report indicating a significant 0.5 percent surge in wholesale prices in April, marking the largest rise. (55 words)<\/p>\n","protected":false},"author":662,"featured_media":2244588,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2024\/05\/Jerome-Powell.jpg","fifu_image_alt":"","footnotes":""},"categories":[548],"tags":[],"class_list":["post-2244587","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-conservative-news-daily"],"fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2024\/05\/Jerome-Powell.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2244587","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\/662"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2244587"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2244587\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2244588"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2244587"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2244587"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2244587"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}