Joe Biden’s administration is rushing to curb inflation after official figures released yesterday showed consumer prices rose at their fastest pace in October in three decades.
The consumer price index jumped to 6.2 percent from the previous year, from 5.4 percent in September. The push has been an increase in the costs of energy as well as shelter, food, used cars and trucks, and new vehicles.
The energy index rose 4.8% from September, while the gasoline index rose 6.1%. On an annual basis, these sectors are up 30% and 50%, respectively.
Speaking during a visit to Baltimore yesterday afternoon, Biden acknowledged that the price hike was a concern for American households. “Everything from a gallon of gasoline to a loaf of bread costs more,” he said.
Rising prices threaten to undermine the U.S. economic recovery, undermine the president’s spending plans and doom the Democratic Party in next year’s midterm elections.
The Federal Reserve may also be forced to tighten monetary policy faster than expected. The central bank has already announced the end of its $ 120 billion per month asset purchase program at a pace that indicates the stimulus will cease completely by June. Economists and market participants are increasingly of the opinion that the Fed will raise interest rates shortly thereafter.
US government debt sold sharply yesterday after the inflation report was released, particularly short-term debt which is more sensitive to interest rate expectations.
Thanks for reading FirstFT Americas. Here’s the rest of today’s news – Gordon
Five other articles in the news
1. Elon Musk dumps nearly $ 5 billion in Tesla shares Elon Musk sold nearly $ 5 billion worth of his Tesla shares in the first three days of this week. The sale was estimated to be worth around 3% of its total stake in the electric car maker and was a response to a Twitter poll result.
2. Wall Street Banks Reap GE Fees General Electric has paid more than $ 7 billion in investment banking fees since 2000, as Wall Street lenders reaped the rewards of a frenzied period of negotiations that resulted in the stock price falling. and the dissolution of the best-known American conglomerate.
3. Rivian roars before its stock market listing The Amazon-backed electric vehicle maker, which has yet to record significant revenue, jumped on its Nasdaq debut. The shares closed 30% above the initial public offering price, giving it a market value of $ 88 billion, higher than traditional automakers General Motors and Ford.
4. McKinsey partner accused of insider trading U.S. prosecutors have charged a partner in consulting firm McKinsey with alleged insider trading fraud before Goldman Sachs acquired $ 2.2 billion from online loan provider GreenSky.
5. Afghans risk losing aid International aid agencies have warned that there are only a few weeks left to deliver food and other life-saving aid to mountainous provinces before winter sets in, cutting off remote areas as Afghanistan does. in the face of one of the world’s worst humanitarian crises.
Summary of COP26
UN climate negotiators rush to agree on rules for a global carbon market, the so-called “Article 6”.
The we and China makes a rare and unexpected commitment to cooperate on the “existential” climate crisis.
Are companies’ net zero plans credible? Big companies were in the mood to congratulate themselves at COP26 in Glasgow, but critics say voluntary greening measures taken by companies have not been enough and are too vague.
The climate change economics represented “the largest reallocation of capital since the industrial revolution,” said economist Nicholas Stern.
The day to come
Singles Day in China China’s largest online shopping festival kicks off today. But the vertigo of Alibaba’s annual sales passed out this year, as Jack Ma’s e-commerce group focuses on social well-being to please the Beijing authorities. (SCMP, Nikkei Asia)
Iran negotiator in London Ali Bagheri Kani, Iranian deputy foreign minister and main nuclear deal negotiator, is heading to London ahead of talks in Vienna at the end of the month.
EU growth update The European Commission is today releasing its autumn economic forecast for gross domestic product, inflation, employment and public finances. Find out more about the EU economy in our Europe Express newsletter.
American Veterans Day Today is a public holiday in the United States to honor military veterans, people who have served in the armed forces of the United States. President Joe Biden will participate in a wreath laying service and address at Arlington National Cemetery.
What else do we read
GE may be breaking up, but conglomerates will survive The obituary of the conglomerate has been written over and over and somehow still survives, argues Brooke Masters.
Can the Vatican reform its finances? In this film, the FT investigates the finances of the Holy See and examines how historic proceedings related to a controversial London real estate deal are seen as part of Pope Francis’ reforms in the city-state.
A story of aristocratic resilience Arcane, hereditary, all male – and at the heart of British democracy. How is it that in the 21st century a small band of blue-blooded peers continue to cling to power in the House of Lords? George Parker explores the modern face of secular British aristocracy.
‘Nein Danke’ Switzerland has the lowest Covid-19 vaccination rate in Western Europe: 33.6% of the country’s population has not received a first dose, as resistance to the bites overlaps with anti-establishment policy and populist in rich German-speaking Europe.
Iran’s social divisions exposed to airport departures Iran’s growing social divisions are played out at Tehran International Airport, where pilgrims to the Iraqi holy city of Karbala stand side by side with tourists leaving for beach vacations in Antalya, on the coast. Mediterranean of Turkey, writes Najmeh Bozorgmehr.
Thanks to the readers who responded to our survey yesterday. Twenty-one percent said local Covid restrictions were still too tight.
What’s your favorite book of 2021? The FT wants readers’ recommendations for the best reads of the year. The answers will be published as part of our Books of the Year series, in which FT writers and reviewers choose their favorites from the past 12 months.
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