Part 2/11:
To comprehend the gravity of the inflation issue, one should first analyze the latest inflation reports. In September 2024, the annual inflation rate was celebrated at 2.4%, but it has since escalated to 3% after several months of increases: 2.6% in October, 2.7% in November, and 2.9% in December. This consistent rise in prices means that individuals who have not received raises are increasingly feeling the pinch, particularly as essential goods, such as groceries, become more expensive.
This inflationary trend raises alarms leading many to speculate about the health of the economy. Despite these concerns, Powell emphasized in a recent congressional testimony that the current economic landscape is strong and vibrant, indicating that a recession is not an immediate threat.