Consumers feel the pinch in their daily lives. Prices for old automobiles and trucks have increased by 41% in the last year, 40% for fuel, 18% for bacon, 14% for bedroom furniture, and 11% for women’s clothes. The Federal Reserve did not expect such a severe and long-lasting inflation wave. Consumer inflation would remain below […]

President Donald Trump and the Republican-controlled House of Representatives and Senate have consistently stated that tax reform is a top priority for their administration. The ruling party seeks to promote a more robust economic boom by lowering taxes for individuals and corporations. However, according to some calculations, the American economy is already near to full

With prices on the increase, it’s worth revisiting some of Buffett’s finest advice for dealing with what he famously called a “gigantic corporate tapeworm.” Invest in good businesses with low capital needs Buffett has long pushed for holding firms that generate significant returns on invested capital. During inflationary periods, businesses with minimal capital requirements that

A fall in the general price level is defined as deflation. It is an inflation rate that is negative. The issue with deflation is that it frequently leads to slower economic growth. This is because deflation raises the real worth of debt, lowering the purchasing power of businesses and individuals. Furthermore, lowering costs can deter

Volcker is credited with bringing the United States’ high inflation levels of the 1970s and early 1980s to an end while serving as chairman of the Federal Reserve. Inflation was high when he became chairman in 1979, peaking at 13.5 percent in 1981. The inflation rate fell to 3.2 percent by 1983, thanks to Volcker