Inflation is reaccelerating in the American economy and its housing market is remaining locked in an “unaffordability” crisis; yet the Trump Administration appears to be moving to deregulate the banking system—which reliably leads to financial crashes in the economy’s history since the 1970s.
Over the months since June 2024, inflation in the U.S. economy has re-accelerated even by the underestimated Consumer Price Index (CPI). The Federal Open Market Committee has stopped considering more interest rate cuts as inflation resurges, judging from its January meeting minutes which were released on Feb. 18. The average CPI inflation since last June, if annualized, has been just under 4%; for the three months November-January, annualized, it has been 4.5%; and the January 2025 increase was a further acceleration, 0.47% for that month. Producer Price Inflation (PPI) has been following the same track. President Donald Trump commented on the January figures on Truth Social: “Inflation is back. I had nothing to do with that.”
