Congress is Lost

Inflation On The Rise 🗞️

Inflation data from September came out this week, with inflation continuing to run hot. The Fed’s goal is for inflation to be at a steady 2% year over year, meaning that they want September prices to be 2% higher for consumers when compared to last September.

How they measure this is with CPI, Consumer Price Index. This is a basket of goods and services that consumers spend money on. If you want to read more about it and get into the math check it out here.

As you can see in this graph, the Fed has done a good job at quickly lowering inflation from its peak early last year. However, in the last couple of months, CPI has reversed course and started creeping back up.

Remember how I said that CPI measures the price change of a basket of goods and services? Well, here is a more granular look at what goes into it.

As you can see, rents are the main culprit, rising 7.4% from a year ago.

Now take a look at the dark red bar, earnings.

Overall, earnings growth has continued to rise. Earnings have actually outpaced overall inflation, but it might not feel that way if you spend more on the stuff at the top of this graph. Sure, overall CPI is only up 3.7%, but I’m a renter who has a couple pets and enjoys eating out. So for me inflation feels a whole lot higher.

It’ll be interesting to monitor inflation next month. Hopefully we can get down to 2% again.

Quick Hits 🥊

News to Know

U.S. Congress is Lost

In a surprising turn of events, Rep. Steve Scalise, R-La., has withdrawn from the race to become the new House speaker after failing to gather enough support among House Republicans.

With no clear path forward and looming challenges like the ongoing conflict between Israel and Hamas things are not looking good. A government funding deadline is on Nov. 17, and as it stands the House remains in a state of deadlock.

EU Clashes with Social Media

European Union Commissioner Thierry Breton has issued stern warnings to social media leaders Mark Zuckerberg, Elon Musk, and Shou Zi Chew regarding misinformation on their platforms related to the Israel-Hamas conflict.

War and Crypto

The ongoing Middle East conflict is raising concerns among traders, potentially causing a short-term decline in cryptocurrencies like Bitcoin. Rising geopolitical tensions and fears of the conflict spreading to nearby oil-producing nations have led to market sensitivity. Hear what traders are saying.

Personal Finance 💵

Sizing Up Your High Yield Savings Account

Alright, so you understand that high-yield savings accounts are a great option for your cash right now. Okay but now what? How do you actually take advantage of this and what do you need to consider with your options? Well here is what you need to do.

Do you qualify for Student Loan Forgiveness?

With student loans affecting so many people, we want to make our readers aware that there are 4 student loan forgiveness programs. 

• Driven Repayment (IDR): If borrowers who enrolled in IDR plans have a loan balance at the end of their 20- or 25-year loan term, the government forgives the remaining amount of debt.

• Perkins Loan Forgiveness: Borrowers with Perkins Loans can qualify for up to 100% forgiveness of their loans based on their employment. Teachers, first responders, and some volunteer workers are eligible.

• Public Service Loan Forgiveness (PSLF): PSLF is a program for nonprofit and government employees who work in public service for at least 10 years and make 120 monthly payments. Under PSLF, payments made under an IDR plan are qualifying payments.

• Teacher Loan Forgiveness: Elementary and secondary school teachers who work in low-income schools can qualify for up to $17,500 of loan forgiveness after five years of service.

Check out an in-depth look to see if you qualify.

Quote of the Day 💭