On this show, I’ve discussed inflation repeatedly, more so since 2020 when I saw the Federal Reserve pumping trillions of dollars into our economy and the federal government spending a record six and a half trillion dollars.
After the Federal Reserve’s last meeting, Chairman Jerome Powell signaled the central bank will remain hawkish on combating inflation and is open to future rate hikes despite holding the Fed funds rate steady at 5.25-5.5%. That’s not surprising considering the most recent disappointing inflation data. Consumer prices jumped to 3.7% for the 12-month period ending in August- the largest monthly increase since January thanks to soaring gas prices. It appears the Fed may have lost its battle against inflation.
Consequently, older Americans on a fixed income in retirement will be hardest hit by surging prices. I say this for two reasons. First, is to encourage reverse mortgage professionals that despite challenging market conditions and rising rates more than ever before older homeowners will need additional cash flow to absorb the increased cost of living. Second, to sound the alarm that our nation’s present economic trajectory is unsustainable In fact, over the last ten years federal spending has increased 70 percent, or more than three times the rate of inflation and population growth.
Today, every American consumer is feeling the pain in their pocketbooks as a result of our government’s unchecked spending as the purchasing power of the U.S. dollar continues to decline making goods and services more expensive. But just how much more expensive?
The sudden surge in consumer costs for everything from a gallon of milk to a gallon of gas is eating away at American savings and most tragically retirement security of older Americans.
Today, I’m going to show you just how much the cost of goods and services has soared in the last four years and how the cost of some of those items has often exceeded the inflation rate.
