One analyst says it’s time to sound the inflation alarm inside of the White House. However, top officials are pushing back on inflation worries, saying price increases among gas, food, lumber, and more are signs of recovery.


CNN Business/Matt Egan, CNN Business
Inflation is back. Biden should be worried

It’s time to sound the inflation alarm inside the White House.

From used cars and gasoline to lumber and food, prices are surging. The return of inflation, after a decades-long absence, is squeezing families and businesses recovering from the pandemic.

In many ways, higher prices can be seen as evidence that President Joe Biden’s economic and health policies are working. The successful rollout of vaccines is allowing companies to reopen and Americans to resume traveling, spending and working. Growth is being turbo-charged by rock-bottom interest rates and unprecedented fiscal stimulus.

For many years, the nightmare for the US economy was a Japanese-style spiral of falling prices. Now, the risk for the White House is an economy that overheats, forcing the Federal Reserve to cool it down by raising interest rates so aggressively that it short-circuits the Biden boom, both on Main Street and Wall Street.

The return of inflation also undermines Biden’s efforts to ease inequality. That’s because higher prices on essentials are most painful for low-income families — the same ones hit hardest by the pandemic.

“The cruel thing about this is, once again, the little guy is being hurt,” Richard Fisher, former president of the Dallas Federal Reserve, told CNN Business.

Read the full story, here.


Kitco News/Jim Wyckoff
Price gains for gold, silver, amid bullish technicals

Gold and silver prices are higher in early morning U.S. trading Wednesday, with gold notching a fresh 4.5-month high and moving above what was psychological resistance at the $1,900.00 level. Charts that are bullish and getting more so are keeping money flowing to the long side of these precious metals markets at mid-week. A U.S. dollar that is still in a funk and crude oil prices not far below this year’s highs are bullish outside elements also supporting the metals markets. June gold futures were last up $10.50 at $1,908.60 and July Comex silver was last up $0.179 at $28.235 an ounce.

Global stock markets were mixed but mostly firmer overnight. U.S. stock indexes are pointed toward modestly higher openings when the New York day session begins. Discussion in the marketplace continues on the recent acceleration of inflationary price pressures and what the Federal Reserve and other central banks plan to do about it. The Fed says rising inflation is “transitory,” but many markets’ price actions suggest otherwise.

Keep reading, here.


CNBC/Jacob Pramuk
Republicans plan to send Biden nearly $1 trillion infrastructure counteroffer this week

A group of Senate Republicans plans to send President Joe Biden an infrastructure counteroffer this week as the sides consider whether they can bridge an ideological gulf to craft a bipartisan bill.

The proposal could cost nearly $1 trillion, and Republicans aim to offset the spending without increasing taxes. The group of GOP lawmakers aims to deliver the plan as soon as Thursday morning.

Hopes for an agreement between the parties to revamp U.S. transportation and broadband appeared to dim last week. After the White House cut its infrastructure offer to $1.7 trillion from $2.3 trillion, an aide to Sen. Shelley Moore Capito, R-W.Va., said the plan’s price tag was “well above the range of what can pass Congress with bipartisan support.”

The Republican group initially put out a $568 billion infrastructure framework last month.

Democrats will have to decide whether they want to chop up their plan enough to win Republican votes, or try to forge ahead on their own using special budget rules. It is unclear if they would consider passing parts of the proposal with GOP support, then moving to approve other pieces on their own.

The Biden administration has said it wants to see whether it can make progress in bipartisan infrastructure talks before Memorial Day.

Continue reading, here.


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