For months, Democrats have been telling themselves a very reassuring bedtime story that plays out in six parts: 1.) Inflation finally will be whipped, at which point 2.) the Fed is going to step in with some well-timed interest-rate cuts, 3.) putting upward pressure on real wages and 4.) lowering rates on mortgages and car loans, at which point 5.) the American people will offer three grateful cheers for Bidenomics and 6.) re-elect the president.
However, several of those six developments are not going to happen. Donald Trump may yet get Joe Biden re-elected, but Fed chairman Jerome Powell isn't going to save the president from a decades-overdue retirement.
In Wednesday's monthly inflation report, overall inflation was at 3.4% while 'core' inflation - which excludes some volatile commodities such as groceries and gas - was at 3.6% - just under twice the Fed's preferred rate of 2%.
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