INFLATION SURGE… REPORT: Trump endorses gas tax hike

Sharing is Caring!

Consumer prices jump much more than forecast, sparking inflation fears

  • The Consumer Price Index, a key indicator of inflation trends, jumped 0.5 percent in January, well above market expectations.
  • Markets reacted sharply to the news, with stocks sliding and government bond yields rising.
  • The Fed is watching inflation closely, so the report could add fuel to interest rate hikes.

U.S. consumer prices rose considerably more than expected in January, fueling fears that inflation is about to turn dangerously higher.
The Consumer Price Index rose 0.5 percent last month against projections of a 0.3 percent increase, the Labor Department reported Wednesday. Excluding volatile food and energy prices, the index was up 0.3 percent against estimates of 0.2 percent.
The report indicated that price pressures were “broad-based,” with rises in gasoline, shelter, clothing, medical care and food.
Markets reacted sharply to the news. The Dow opened more than 100 points lower, but reversed those losses after the first half-hour of trading. Government bond yields also turned higher, with the benchmark 10-year note most recently trading near 2.88 percent, a gain of about 3.8 basis points.

Investors also began to price in the likelihood that the Federal Reservewill raise interest rates at least three times this year.
Scoop: Trump endorses 25-cent gas tax hike

President Trump endorsed a 25-cent gas tax hike to pay for infrastructure at a White House meeting this morning with senior administration officials and members of Congress from both parties, according to two sources with direct knowledge. Trump also said he was open to other ways to pay for infrastructure, according to a source with direct knowledge.

READ  A Couple Things About Inflation
READ  Human smugglers advertise on social media… Border Is Wide Open... Trump wall construction restarts in Texas

5 thoughts on “INFLATION SURGE… REPORT: Trump endorses gas tax hike

  1. How about we cut military spending in half? We could probably do the infrastructure, feed everyone on the planet, pay off all student loans, and still have enough left over to wipe out humanity.

  2. Bad idea Mr. President. Issue currency without interest. Replace Federal Reserve Notes with United States Notes. Save billions in interest payments to private bankers.

  3. gee,frump,just take the military budget money to pay for infrastructure ,and oh yes the welfare to isn’treal. always dumping on those of us who can’t afford it.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.