Dow Falls 400 Points As Fed Official Warns Hot Inflation Data Serves As 'Cautionary Tale'
ForbesNov 27, 2022
US Inflation Remained Higher Than Expected in January
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The Facts
US inflation in January came in hotter than anticipated, as the Consumer Price Index (CPI) rose 0.3% month-over-month and 3.1% since January 2023, according to data released Tuesday by the Bureau of Labor Statistics (BLS).
While US prices increased at a slower rate compared to December, when annual inflation was 3.4%, January’s figure remained higher than the 2.9% expectation forecasted by economists.
The Spin
Republican narrative
Despite the Fed hiking interest rates astronomically, the Biden administration has failed to get inflation under control. The American people can see the president's failures every time they open their wallets. This latest report means the Fed won't be cutting rates, and the US economy will remain shackled by Biden's inflation.
Democratic narrative
It's unrealistic for the economy to beat every monthly forecast. But inflation has been cooling dramatically and that trend continued in January. Under Biden, the economy is better than it was a year ago and is on its way to a full recovery. Bideneconomics continues to be a boon to the American consumer.