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Paul Brady's avatar

I must agree with David Axelrod (good grief; what's become of me?) Biden must focus more on inflation. Today, we saw the CPI come in higher than expected. People still feel the sting of higher prices. "It's the economy, stupid!" -- the Ragin' Cajun' (Oh, no! There I go again.)

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tupper's avatar

Perhaps counterintuitively, given today's report, Biden should start politely nudging the Fed to reduce rates. Maybe not so counterintuitive, since shelter has been and remains a stubborn item in that report, and reducing interest rates will help to open up the market. More importantly, once they do reduce rates, he will be able to take some credit for it.

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Spencer $ Sally Jones's avatar

I emphatically agree with Axelrod. The majority of voters only see policies that immediately affect their lives. Many of BidenтАЩs тАЬwinsтАЭ need a few years to see. I also agree that The Fed could seriously consider lowering interest rates. The high cost of Money is negatively affecting building & renovation, hospitals & health care, as well as food. Every business that needs to borrow in order to provide is paying a premium that is immediately passed to the consumer voter.

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max skinner's avatar

The "high" cost of money is high to those who came of borrowing age after 2009. To those of us who are older it is not that high. The thing that has changed is the price of a house or car. If the interest rates returned to zero, the prices of those things remain the same. That's where the real issue lies for the average person.

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Spencer $ Sally Jones's avatar

I believe several other things come into play. In the 80тАЩs and 90тАЩs rates were high, but families didnтАЩt need cell phones, computers and high price electrical power. Also the minimum wage that was raised nationwide back then has not kept pace with inflation.

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max skinner's avatar

True that.

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Dave Yell's avatar

One of the reasons why interest rates are so high now(among other reasons) is they were kept so so for a decade(about zero) resulting in a decade of easy money.

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Spencer $ Sally Jones's avatar

Absolutely. The government gave away money longer than necessary.

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Dave Yell's avatar

I love the Ragin' Cajun'.That is when I can understand him.

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