Fed Claims Inflation Defeated Amid Public Skepticism

Federal Reserve Chair Jerome Powell has declared that the surge in inflation over the past three years is now essentially defeated, achieved without causing a widely predicted recession and high unemployment. Despite this, most Americans remain dissatisfied due to persistently high prices for essentials such as food, gas, and housing. This public sentiment poses significant challenges for Vice President Kamala Harris's potential succession of President Joe Biden, as many voters are frustrated with the administration's economic record. The disparity between economists' and ordinary Americans' perspectives highlights the emotional lag in consumer sentiment despite falling inflation rates. Analysts note that this 'inflation overhang' can take months or years to adjust, even if wages keep pace. The Fed may soon cut interest rates for the first time in over four years, signaling confidence in economic stability.