BATON ROUGE, La. (WAFB) — President Biden has bragged about signing the Cut Inflation Act, saying it would help bring inflation down.
“The inflation we are experiencing today is simply the result of $4 trillion of excess money being printed and flooded into the market. And now the chickens are coming home to roost,” said Fred Dent, Chartered Financial Analyst.
“You could have politicians on either side arguing the pros and cons. But if we look at the Congressional Budget Office, the nonpartisan organization, they say the deficit reduction, the minimal benefits, the actual reduction in inflation, is negligible,” Dent said.
Although gasoline prices have remained somewhat stable, they are still higher than they were before 2020. And at the same time, prices continue to rise.
“And that’s the part that bothers a lot of economists because these things are less volatile and more sticky over time and that means it could stick around a little longer,” Dent added.
And Republicans in Washington waste no time in pointing fingers.
“I don’t think Americans buy it. They pay 11.4% more for food than last year, 15.8% more for electricity compared to last year and the rent has increased by 6.7% compared to last year” , said Sen. Bill Cassidy (R).
Senator Cassidy says those who will continue to suffer the most are those who live paycheck to paycheck. And that number keeps growing.
“They see the paycheck they take home not going as far as it can. They see the value of their 401K going down as the stock market goes down,” Senator Cassidy continued.
The Bureau of Labor Statistics released data yesterday showing that inflation cooled slightly in July and August, but remains elevated. Fred Dent says when it comes to your money, you shouldn’t panic and stay the course with your investments. Add sooner or later all this should pass.
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