THE Federal Reserve has spoken out after fears about an impending economic recession.
It’s no secret that there have been spikes in grocery prices and mass store closures over the past year.
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Inflation also recently increased by 0.5% in January, with the year-over-year rate still at about 3%.
That remains off the mark from the Federal Reserve’s goal of 2%.
Energy and food are particularly taking some hits, especially considering the ongoing egg shortage due to the spread of the bird flu.
President Donald Trump blamed the uptick on former President Joe Biden.
“BIDEN INFLATION UP!” read a post from the President on Truth Social.
Despite all the commotion and uncertainty, chair of the Federal Reserve Jerome Powell has assured Americans that “the US economy continues to be in a good place,” per a news release.
“The labor market is solid, and inflation has moved closer to our 2 percent longer-run goal,” Powell said.
“At the Federal Reserve, we are intently focused on the dual-mandate goals given to us by Congress: maximum employment and stable prices.”
POLICY PLEDGE
Powell also confirmed that the Federal Reserve is looking to bring about “significant policy changes” to improve America’s economic standing moving forward.
The policies will be implemented in trade, immigration, fiscal policy, and regulation.
“While there have been recent developments in some of these areas, especially trade policy, uncertainty around the changes and their likely effects remains high,” the Fed chair noted.
Although the move isn’t set in stone.
“If the economy remains strong but inflation does not continue to move sustainably toward 2 percent, we can maintain policy restraint for longer,” he added.
“If the labor market were to weaken unexpectedly or inflation were to fall more quickly than anticipated, we can ease policy accordingly.”
CPI and Inflation explained
The Consumer Price Index is how the federal government measures inflation.
Every month, the Bureau of Labor Statistics shares its CPI numbers with detailed breakdowns of which items have changing prices.
The CPI shows the amount prices rose or fell over the previous 12 months.
The calculation process is complex, but measures the changes in price for urban consumers, those living or working in an American metropolitan area.
While that does not cover everyone, it measures prices for about 90% of the population.
“Our current policy stance is well positioned to deal with the risks and uncertainties that we face in pursuing both sides of our dual mandate,” Powell emphasized in the release.
EGG MANIA
Even so, grocery prices remain a main concern for American consumers, especially considering eggs.
Earlier this year, costs hit an average of around $10 in states like Hawaii.
Retailers like Costco, Walmart, and Trader Joe’s were forced to place limits on carton purchases.
Dr. Jim Keen, director of veterinary sciences for the Center for a Humane Economy and former research scientist with the USDA, told The U.S. Sun in an exclusive conversation that it would take “several minutes for egg prices to go down” amid the bird flu outbreak.
“There is always a delay in addressing the egg supply shortage due to the control effort, the repopulation of poultry farms with new birds, and the time for pullets to reach egg-laying age,” Dr. Keen explained.
Concerns of increased costs falling to consumers as a result of President Trump’s tariff policies are also ongoing.
Companies like Coca-Cola are making considerations with the packaging of its beverages moving forward to avoid added costs.
Even toy companies like Mattel are predicting that there could be price increases on popular favorites like Hot Wheels and Barbie.
