Inflation

In December Jeremy Hunt hosted a mortgage summit, attended by lenders and the Financial Conduct Authority, to discuss rate woes. At the time, the numbers were at least moving in the right direction. During Liz Truss’s 49-day premiership, the FCA expected interest rates to rise to 5.5 per cent, an increase which was forecast to put 570,000 people into mortgage payment difficulty. Once Rishi Sunak and Hunt undid Truss’s mini-Budget, things looked calmer: a 4.5 per cent peak was expected, and 356,000 people were due to be in difficulty. Hunt was still struck by the figure. Horribly high, he thought. The Chancellor used the meeting to lay the foundation for regulatory changes that could be used in the future to help struggling mortgage-holders.

Joe Biden is considering making his re-election announcement as early as Tuesday.  After months of teasing his inevitable run with awkward comments like telling Al Roker he will be pushing out Easter eggs, it would seem the moment is upon us.   So what does this mean for 2024?   Well, there’s still a long way to go. And as 2016 showed us, primaries make for plenty of surprises. Still, even with the unknowns, there’s a good chance that we end up with a 2020 re-rerun: former president Donald J. Trump versus President Joseph R. Biden. Because that worked out so well for everybody last time!  There are plenty of problems currently plaguing the country, from inflation to train derailments.

Joe Biden’s Ireland trip is all about Joe Biden Half a century since he was sworn in as a US senator, the Biden brand is a well-established series of safe bets: a fondness for aviator sunglasses, a hankering for chocolate chip ice cream. Also high on the list: conspicuous displays of Irishness. The second Irish-American president is fond of quoting Heaney and Yeats. He may be the only teetotaler who enjoys St. Patrick’s Day, which he says is his favorite holiday.  And so much about Biden’s trip to Ireland this week is unsurprising. After landing in Belfast last night, the president this morning had a quick cuppa with British prime minister Rishi Sunak and gave a speech to mark twenty-five years since the Good Friday Agreement.

Powell pays for past mistakes In the summer of 2020, Fed chair Jerome Powell could not have been clearer. “We’re not thinking about raising rates,” said Powell, before doubling down: “We’re not even thinking about thinking about raising rates.”   Things, as we now know, turned out a little differently. The months marched on, and with the Biden administration determined to spend, spend, spend, inflation went from “high class problem” to “transitory” to the biggest problem facing the US economy. Powell and his Fed colleagues went from not thinking about thinking about raising rates to, well, raising rates. From virtually zero around this time last year to 4.75 percent as of January.

After a bank run on Silicon Valley Bank left the institution in ruins, the Federal Reserve announced it would make whole the bank’s customers, including those with uninsured deposits in excess of $250,000, which should have made them ineligible for the Deposit Insurance Fund. President Biden promised the American people that this was not a bailout because no losses would be borne by taxpayers — a claim the Wall Street Journal assessed as a “whopper.” But the debate we should be having is not over the definition of the authorities' actions, but how to judge them morally — especially given how the Fed has been trying to tame inflation for the past two years.

You know the Democrats are grasping at straws when you see the White House Twitter account praising President Biden for this year’s increased Social Security checks. Particularly, Cockburn is at pains to point out, as the increase in Social Security is indirectly indexed to inflation. "Seniors are getting the biggest increase in their Social Security checks in ten years through President Biden's leadership," the White House bragged on Tuesday. Even Twitter's in-house moderators were taken aback, deigning to slap a "context" label on the post. After helpful users added the missing context on Wednesday, the White House's tweet mysteriously disappeared. How curious!