S&P 500 another all-time high. That feels a world away from US households
Inflation 3.8%, against an official target of 2%, it remains too high for the Federal Reserve to risk a cut in the fed funds rate:
And yet, financial markets didn’t react with horror.
So Why Are Americans Still so Unhappy About Inflation?
College has made itself too hard for most to afford
Even though inflation may be down, it’s harder to finance debt. That naturally makes people feel poorer, and effectively makes products typically bought on credit more expensive than they appear.
Core inflation is currently higher than the headline, and the core measure exists to focus on the goods and services that can be affected by monetary policy.
There’s not much a central bank can do about food or fuel prices. However, food and fuel certainly matter to family budgets.
John Authers 13 March 2024
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