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After November CPI report, ex-Treasury economist warns of major 'shock' to US economy
What November’s CPI report means for Americans’ wallets
Fox News contributor Liz Peek, former Treasury Department economist David Beckworth, Republican Rep. Jason Smith and Red Apple Foods and United Refining Company CEO John Catsimatidis react to core CPI retreating for the second consecutive month.
Reacting to core inflation retreating for the second consecutive month after a September high, a market panel on "Mornings with Maria" warned the Federal Reserve isn’t looking ahead to how a recession could cause "whiplash" and "shock" to the U.S. economy.
"It's definitely possible we go into recession," former Treasury Department economist David Beckworth said on Tuesday. "It would be an incredible whiplash to the economy because the labor market is still doing relatively well. To get really steep job losses would be a drastic, drastic change and it would be a shock."
Inflation moderated more than expected in November, an early sign that painfully high consumer prices are beginning to loosen their stranglehold on the U.S. economy.
The Labor Department said Tuesday that the consumer price index, a broad measure of the price for everyday goods including gasoline, groceries and rents, rose 0.1% in November from the previous month. Prices climbed 7.1% on an annual basis.
INFLATION EASES MORE THAN EXPECTED IN NOVEMBER TO 7.1%, BUT CONSUMER PRICES REMAIN ELEVATED
Those figures were both lower than the 7.3% headline figure and 0.3% monthly increase forecast by Refinitiv economists, a potentially reassuring sign for the Federal Reserve as it tries to tame runaway inflation with a series of aggressive interest rate hikes. It marked the slowest annual inflation rate since December 2021.