patrick.net

clambo says

they think inflation is like the weather.

Or worse, it is "Greedy corporations overcharging."

I had a concern yesterday that the 10 Year Treasury was at 4.99% which makes federal debt service or payment even more difficult.

The PCE is now at a 6-month average of around 2.7% which is promising considering it peaked around 7% back in 2022. This should eventually assist with reducing interest rates from the 10 Year Treasury to the 30 year mortgage rate.

The Federal Reserve relies on PCE to monitor inflation, and Federal Reserve Chairman Jerome Powell said he was looking at inflation to remain below 3% if he was to start considering reductions to the Federal Funds rate.

I think Powell would lower the Fed Funds rate from 5.5% to 5% if PCE remains below 3%, as that provides enough margin keeping the Fed Funds rate 2% above annual inflation.

How so?

The Feds will ALWAYS be able to pay the debt.

Debt service or payment was 8% of total expenditures in 2022. What was it in 2023 and what will it be in 2024 ?

AD says

Debt service or payment was 8% of total expenditures in 2022. What was it in 2023 and what will it be in 2024 ?

Doesn't matter. Also, tax receipts are higher because of inflation.

A lot of recent inflation was due to the scamdemic and the following money printing. So it started in early 2020 when they were trying to destroy Trump's excellent economy

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act): This was a $2.2 trillion economic stimulus bill passed by the 116th U.S. Congress and signed into law by President Donald Trump on March 27, 2020, in response to the economic fallout of the COVID-19 pandemic in the United States1. The spending primarily included $300 billion in one-time cash payments to individual Americans, $260 billion in increased unemployment benefits, the creation of the Paycheck Protection Program that provides forgivable loans to small businesses, $500 billion in loans for corporations, and $339.8 billion to state and local governments.

Consolidated Appropriations Act, 2021: On December 27, 2020, President Donald Trump signed into law H.R. 133, a consolidated $2.3 trillion appropriations package, including provisions allocating approximately $900 billion for various economic relief programs to address hardships caused by the coronavirus pandemic.