President says there is more work to do.
The Federal Reserve’s preferred method of measuring inflation, the Personal Consumption Expenditures Price Index (PCE), rose to an annualized 5.4 percent in January. Economists had forecast an increase of 4.3 percent.
At the same time, personal income for the month rose 0.6 percent, and personal spending was up 1.8 percent, placing individuals “behind the eight-ball” in personal deficits.
Minutes of the latest Federal Reserve meeting show that members are resolved to keep using rate hikes to fight inflation. The inflation target for the Fed is 2 percent annualized.
On Friday, President Biden acknowledged that “there is more work to do” to stem inflation. “Today’s report shows we have made progress on inflation, but we have more work to do,” he stated. “Annual inflation in January is down from the summer, while the unemployment rate has remained at or near a 50-year low and take-home pay has gone up.”
As the Lord Leads, Pray with Us…
- For Chairman Powell and members of the Federal Reserve as they continue to address inflation through interest rate hikes.
- For the president and his administration as they consider options to support the economy.
- For American families experiencing the financial difficulties of both the rising cost of living and increased interest rates.
Sources: CNBC, Fox News, Washington Examiner
