The NPR Politics Podcast After Months Of Inflation, Where Is The Economy Heading?
Dec 28, 2022
Scott Horsley, NPR's chief economics correspondent, provides insightful analysis on the current state of the economy amidst inflation concerns. He discusses the recent decline in inflation rates and what this means for voters and the Biden administration. The conversation delves into the Federal Reserve's interest rate hikes, their effects on employment and consumer borrowing, and the intersection of inflation with political polarization. Experts weigh in on the unpredictable economic landscape as they consider forecasts for 2023.
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Slowing Inflation
- November inflation slowed to 7.1% from a year ago, down from June's 9% peak.
- This is still high but shows a broader slowdown beyond just gas prices.
Inflation Drivers
- Housing costs are a significant inflation driver, but their impact is expected to decrease.
- Service costs, tied to labor costs, pose an ongoing challenge due to the tight labor market.
Fed Actions and Job Market
- The Federal Reserve has aggressively raised interest rates to combat inflation.
- This impacts borrowing costs, but hasn't significantly slowed job growth yet.