Edited By: Mohammad Haris
Last Updated: February 26, 2023, 11:07 IST
Twitter CEO Elon Musk. (File Photo)
Since March of last year, the US Fed has attacked inflation by raising its key interest rate eight times
Twitter CEO Elon Musk on Sunday showed concern over the high inflation and asked why can’t witchcraft defeat inflation. He also compared US’ efforts to control inflation to the Irish Republican Army’s (IRA) campaign of violence during the Troubles, while asking which is harder defeating inflation or defeating the British.
“Why can’t witchcraft defeat inflation!?” said Elon Musk, who is also the CEO of Tesla, in a tweet on Sunday. In another tweet, along with a picture, he wrote, “Inflation Reduction Act (IRA) vs Irish Republican Army (IRA)… But which is actually harder, defeating inflation or defeating the British?”
Since March of last year, the US Fed has attacked inflation by raising its key interest rate eight times. According to the latest data, consumer prices rose 0.6 per cent from December to January, up sharply from a 0.2 per cent increase from November to December.
The latest report from the US commerce department showed that on a year-over-year basis, consumer prices rose 5.4 per cent, up from a 5.3 per cent annual increase in December.
Last week, the government issued the consumer price index, which showed that prices surged 0.5 per cent from December to January, much more than the previous month’s 0.1 per cent rise. Measured year over year, consumer prices climbed 6.4 per cent in January. That was well below a recent peak of 9.1 per cent in June but still far above the Fed’s 2 per cent inflation target.
Moreover, despite the resulting higher borrowing costs for individuals and businesses, the job market in the US remains surprisingly robust. That is actually a worrisome sign for the Fed because strong demand for workers tends to fuel wage growth and overall inflation. Employers added a sizzling 517,000 jobs in January, and the unemployment rate fell to 3.4 per cent, its lowest point since 1969.
The US government’s measure of wholesale inflation, which shows price increases before they hit consumers, accelerated 0.7 per cent from December to January after having dropped 0.2 per cent from November to December.
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