REUTERS
"US February budget deficit climbs on interest costs, tax refunds"
Reuters
March 12, 2024
March 12 (Reuters) - The U.S. federal budget deficit grew in February with outlays surging as annual tax-filing season kicked into gear and interest costs on the national debt kept rising, the U.S. Treasury Department said on Tuesday.
The deficit last month was $296 billion, 13% larger than the $262 billion shortfall in February 2023.
Outlays for the month grew 8% to $567 billion - a record for the month - while receipts rose 3% to $271 billion.
Economists polled by Reuters had expected a deficit of $299 billion in February.
For the first five months of the fiscal year, the deficit rose by $106 billion, or 15%, to $828 billion as interest costs on the national debt rose.
The Treasury said both receipts and outlays were records on a year-to-date basis, with receipts up 7% to $1.856 trillion, and outlays up 9% to $2.684 trillion.
Individual tax refunds, which are deducted from receipts, were $58 billion, up 11% from 12 months earlier.
The Internal Revenue Service last year had adopted new scanning technology to enable it to process paper returns more quickly.
Individual withheld receipts in February, benefiting from strong employment trends, were up $21 billion, or 8%, from a year earlier.
Interest expenses on the $26 trillion national debt continue to grow rapidly, with debt-servicing costs up 67% from February 2023 to $76 billion, a record for the month.
On a year-to-date basis, interest on the public debt rose 41% to $433 billion and for the first five months of the fiscal year was exceeded only by Social Security in individual line item expenses.
The weighted-average interest rate on Treasury securities rose to 3.2% in February from 2.52% a year ago and 3.15% in January.
Reporting by Dan Burns; Editing by Paul Simao
https://www.reuters.com/world/us/us-feb ... 024-03-12/
THE ECONOMY
Re: THE ECONOMY
FOX News
"Former White House economist warns Biden's budget catalyzes an 'economic disaster'"
Story by Kristen Altus
13 MARCH 2024
Tax hikes, handouts and living with debt instead of the American dream – one former White House economist is taking offense to President Biden’s latest fiscal plan.
"It’s just astonishing, this budget," former Council of Economic Advisers Chairman Kevin Hassett said on "The Bottom Line" Monday.
"What they're doing is they're borrowing to gin up GDP, but they're not really getting much GDP out of it."
"In fact, they're wasting a lot of the money."
President Biden proposed an array of tax hikes in his annual budget request to Congress that would dramatically raise the rates paid by corporations and wealthy Americans.
The president laid out the tax hikes Monday as part of his sweeping budget blueprint for federal spending in fiscal 2025, which begins in October.
The higher taxes would be borne largely by Wall Street and the top sliver of U.S. households.
Altogether, the tax hikes would reduce the federal deficit by about $3 trillion.
Money from steeper taxes would also help to pay for expensive new programs floated by Biden, including a monthly tax credit to help some homeowners offset steep mortgage payments, subsidies for child care and lower prescription drugs.
"Joe Biden is really creating an economic disaster."
"And you have to wonder, are they just ignorant or are they just lying for political power?"
"And my guess is, it's the latter," Hassett said.
"There were 3.3 million jobs created for illegal aliens and people who were living in the U.S. in February 2020."
"There are a million fewer of them [that] have jobs now," the economist expanded.
"And so Biden is borrowing money from the Chinese to give jobs to illegal aliens and he's doubling down on that in the budget, and it's absolutely economic nonsense."
"It's got to stop."
Specific tax reforms Biden requested include a minimum 25% billionaire tax, quadrupling the corporate stock buyback tax, a 7% increase in corporate taxes, a 5% payroll tax, 21% global minimum tax and closing a carried interest loophole.
"I really think that it's all about politics, and it's really shameful in the fact that there isn't really an honest person left there," Hassett said of the current administration.
Even as Cabinet members like Transportation Secretary Pete Buttigieg are "shilling for this" budget, according to the economist, Americans have not forgotten about the inflationary consequences of more federal stimulus spending.
"You wonder, why are Americans so upset about inflation?"
"It's because this measure that we're telling them they shouldn't worry about, does it actually account for the things that affect their lives the most?"
"And again, we need a government that pays attention to those things and fixes those things," he said.
Senate Republicans reacted to Biden’s budget on Monday as a "liberal wish list" and "reckless."
"Prices keep going up, interest rates keep going up, and taxes keep going up, but President Biden wants to add another $6.4 trillion in debt over the next four years with more reckless, inflation-fueling spending," Sen. Rick Scott, R-Fla., slammed the budget in a statement.
According to Sen. John Cornyn, R-Texas, Biden's "MASSIVE new taxes on the job creators that make & sell what families need" will cause prices to increase.
Sen. Bill Cassidy, R-La., claimed Biden's budget doubled down on Biden's inability to relate to Americans.
"There is no serious plan to secure the border, address crime, lower energy prices, or save seniors from an automatic 24% Social Security benefit cut once the program goes insolvent."
"This is a failure of leadership," he said in a statement.
FOX Business’ Megan Henney and Fox News’ Julia Johnson contributed to this report.
https://www.msn.com/en-us/news/politics ... a104&ei=61
"Former White House economist warns Biden's budget catalyzes an 'economic disaster'"
Story by Kristen Altus
13 MARCH 2024
Tax hikes, handouts and living with debt instead of the American dream – one former White House economist is taking offense to President Biden’s latest fiscal plan.
"It’s just astonishing, this budget," former Council of Economic Advisers Chairman Kevin Hassett said on "The Bottom Line" Monday.
"What they're doing is they're borrowing to gin up GDP, but they're not really getting much GDP out of it."
"In fact, they're wasting a lot of the money."
President Biden proposed an array of tax hikes in his annual budget request to Congress that would dramatically raise the rates paid by corporations and wealthy Americans.
The president laid out the tax hikes Monday as part of his sweeping budget blueprint for federal spending in fiscal 2025, which begins in October.
The higher taxes would be borne largely by Wall Street and the top sliver of U.S. households.
Altogether, the tax hikes would reduce the federal deficit by about $3 trillion.
Money from steeper taxes would also help to pay for expensive new programs floated by Biden, including a monthly tax credit to help some homeowners offset steep mortgage payments, subsidies for child care and lower prescription drugs.
"Joe Biden is really creating an economic disaster."
"And you have to wonder, are they just ignorant or are they just lying for political power?"
"And my guess is, it's the latter," Hassett said.
"There were 3.3 million jobs created for illegal aliens and people who were living in the U.S. in February 2020."
"There are a million fewer of them [that] have jobs now," the economist expanded.
"And so Biden is borrowing money from the Chinese to give jobs to illegal aliens and he's doubling down on that in the budget, and it's absolutely economic nonsense."
"It's got to stop."
Specific tax reforms Biden requested include a minimum 25% billionaire tax, quadrupling the corporate stock buyback tax, a 7% increase in corporate taxes, a 5% payroll tax, 21% global minimum tax and closing a carried interest loophole.
"I really think that it's all about politics, and it's really shameful in the fact that there isn't really an honest person left there," Hassett said of the current administration.
Even as Cabinet members like Transportation Secretary Pete Buttigieg are "shilling for this" budget, according to the economist, Americans have not forgotten about the inflationary consequences of more federal stimulus spending.
"You wonder, why are Americans so upset about inflation?"
"It's because this measure that we're telling them they shouldn't worry about, does it actually account for the things that affect their lives the most?"
"And again, we need a government that pays attention to those things and fixes those things," he said.
Senate Republicans reacted to Biden’s budget on Monday as a "liberal wish list" and "reckless."
"Prices keep going up, interest rates keep going up, and taxes keep going up, but President Biden wants to add another $6.4 trillion in debt over the next four years with more reckless, inflation-fueling spending," Sen. Rick Scott, R-Fla., slammed the budget in a statement.
According to Sen. John Cornyn, R-Texas, Biden's "MASSIVE new taxes on the job creators that make & sell what families need" will cause prices to increase.
Sen. Bill Cassidy, R-La., claimed Biden's budget doubled down on Biden's inability to relate to Americans.
"There is no serious plan to secure the border, address crime, lower energy prices, or save seniors from an automatic 24% Social Security benefit cut once the program goes insolvent."
"This is a failure of leadership," he said in a statement.
FOX Business’ Megan Henney and Fox News’ Julia Johnson contributed to this report.
https://www.msn.com/en-us/news/politics ... a104&ei=61
Re: THE ECONOMY
Fox Business
"Janet Yellen warns inflation decline might not be 'smooth'"
Story by Megan Henney, Edward Lawrence
13 MARCH 2024
EXCLUSIVE: Treasury Secretary Janet Yellen said Wednesday that inflation could face a bumpy return to normal after back-to-back reports showed that price pressures within the U.S. economy rebounded at the start of the year.
In a sit-down interview with FOX Business' Edward Lawrence, Yellen pushed back against stagflation concerns and maintained that progress on inflation has not stalled.
"I wouldn't expect this to be a smooth path month to month, but the trend is clearly favorable," she said.
"That said, President Biden's top priority is addressing the issue of high costs that concerns so many Americans."
Prices for everything including groceries, new cars and health insurance surged in 2021 and 2022 as the result of rampant inflation, which was caused by pandemic-induced disruptions in the global supply chain, an extremely tight labor market and increased consumer demand fueled in part by stimulus cash.
While inflation has fallen considerably from a peak of 9.1% notched during June 2022, it remains above the Federal Reserve's 2% goal.
And when compared with January 2021, shortly before the inflation crisis began, prices are up a stunning 18.49%.
High inflation has created severe financial pressures for most U.S. households, which are forced to pay more for everyday necessities like food and rent.
The burden is disproportionately borne by low-income Americans, whose already-stretched paychecks are heavily affected by price fluctuations.
Progress on inflation has largely flatlined since June, with the consumer price index hovering at or above 3% for the past nine months, stoking concerns on Wall Street over the possibility of "stagflation."
Stagflation is the combination of economic stagnation and high inflation, characterized by soaring consumer prices as well as high unemployment.
Stagflation fears surged in 2022 as the Fed began aggressively hiking interest rates to quell raging inflation, but those mostly dissipated last year amid signs that price pressures were subsiding without a substantial hit to economic growth.
Although there have been some signs recently that inflation is proving to be stickier than expected, Yellen pushed back against those worries.
"I don't think we're going to see stagflation," she said.
"Most forecasters believe we're on a path where inflation will come down over time."
https://www.msn.com/en-us/money/markets ... 08e2&ei=37
"Janet Yellen warns inflation decline might not be 'smooth'"
Story by Megan Henney, Edward Lawrence
13 MARCH 2024
EXCLUSIVE: Treasury Secretary Janet Yellen said Wednesday that inflation could face a bumpy return to normal after back-to-back reports showed that price pressures within the U.S. economy rebounded at the start of the year.
In a sit-down interview with FOX Business' Edward Lawrence, Yellen pushed back against stagflation concerns and maintained that progress on inflation has not stalled.
"I wouldn't expect this to be a smooth path month to month, but the trend is clearly favorable," she said.
"That said, President Biden's top priority is addressing the issue of high costs that concerns so many Americans."
Prices for everything including groceries, new cars and health insurance surged in 2021 and 2022 as the result of rampant inflation, which was caused by pandemic-induced disruptions in the global supply chain, an extremely tight labor market and increased consumer demand fueled in part by stimulus cash.
While inflation has fallen considerably from a peak of 9.1% notched during June 2022, it remains above the Federal Reserve's 2% goal.
And when compared with January 2021, shortly before the inflation crisis began, prices are up a stunning 18.49%.
High inflation has created severe financial pressures for most U.S. households, which are forced to pay more for everyday necessities like food and rent.
The burden is disproportionately borne by low-income Americans, whose already-stretched paychecks are heavily affected by price fluctuations.
Progress on inflation has largely flatlined since June, with the consumer price index hovering at or above 3% for the past nine months, stoking concerns on Wall Street over the possibility of "stagflation."
Stagflation is the combination of economic stagnation and high inflation, characterized by soaring consumer prices as well as high unemployment.
Stagflation fears surged in 2022 as the Fed began aggressively hiking interest rates to quell raging inflation, but those mostly dissipated last year amid signs that price pressures were subsiding without a substantial hit to economic growth.
Although there have been some signs recently that inflation is proving to be stickier than expected, Yellen pushed back against those worries.
"I don't think we're going to see stagflation," she said.
"Most forecasters believe we're on a path where inflation will come down over time."
https://www.msn.com/en-us/money/markets ... 08e2&ei=37
Re: THE ECONOMY
REUTERS
"Yellen says expects rents, biggest contributor to inflation, to move down this year"
Reuters
March 13, 2024
MILWAUKEE, March 13 (Reuters) - U.S. Treasury Secretary Janet Yellen on Wednesday said she expects the cost of rental housing - the single largest contributor to inflation - to move lower this year as new leases are signed.
In an interview with Fox Business, Yellen said it took a while for changes in rent levels to filter through into the consumer price index, but she expected that to occur this year.
"I have every expectation that the single biggest contributor to inflation is going to be moving down over this year," she said.
Reporting by Andrea Shalal
https://www.reuters.com/markets/us/yell ... 024-03-13/
"Yellen says expects rents, biggest contributor to inflation, to move down this year"
Reuters
March 13, 2024
MILWAUKEE, March 13 (Reuters) - U.S. Treasury Secretary Janet Yellen on Wednesday said she expects the cost of rental housing - the single largest contributor to inflation - to move lower this year as new leases are signed.
In an interview with Fox Business, Yellen said it took a while for changes in rent levels to filter through into the consumer price index, but she expected that to occur this year.
"I have every expectation that the single biggest contributor to inflation is going to be moving down over this year," she said.
Reporting by Andrea Shalal
https://www.reuters.com/markets/us/yell ... 024-03-13/
Re: THE ECONOMY
THE HILL
"Yellen says she regrets saying inflation was ‘transitory’"
BY TAYLOR GIORNO
03/13/24 3:43 PM ET
Treasury Secretary Janet Yellen said she regrets describing inflation in 2021 as “transitory,” the term several Federal Reserve and Biden administration officials used to describe the pandemic-induced price surges they initially thought would be temporary.
“I regret saying it was transitory."
"It has come down."
"But I think transitory means a few weeks or months to most people,” Yellen said during an interview with FOX Business Network’s Edward Lawrence on Monday.
Treasury spokesman Christopher Hayden said in an email to The Hill that this was not the first time Yellen expressed regret for calling inflation “transitory,” which she previously said during an interview with WBUR in January.
Headline inflation fell to 3.2 percent year-over-year in February from its 9.1 percent peak in June 2022, a significant improvement but still higher than the Fed’s mandate to keep price increases to 2 percent annually.
Fed Chair Jerome Powell, who was also dinged for initially calling inflation transitory, and the central bank have hiked interest rates from near-zero in March 2022 to a range of 5.25 percent to 5.5 percent to try to curb inflation by cooling demand.
While many economists feared the rate hikes could push the economy into a recession a year ago, it now looks like the U.S. economy could be coming in for a rare “soft landing,” the term for slowing down the economy just enough to bring down high prices without triggering a recession.
The runway for the soft landing may be a bit bumpy as inflation is proving to be stickier than usual, but Yellen, a former Fed chair, was optimistic about the overall downward trend in price pressures.
“I wouldn’t expect this to be a smooth path month to month, but the trend is clearly favorable,” Yellen said.
https://thehill.com/business/4529787-ye ... ome%20down.
"Yellen says she regrets saying inflation was ‘transitory’"
BY TAYLOR GIORNO
03/13/24 3:43 PM ET
Treasury Secretary Janet Yellen said she regrets describing inflation in 2021 as “transitory,” the term several Federal Reserve and Biden administration officials used to describe the pandemic-induced price surges they initially thought would be temporary.
“I regret saying it was transitory."
"It has come down."
"But I think transitory means a few weeks or months to most people,” Yellen said during an interview with FOX Business Network’s Edward Lawrence on Monday.
Treasury spokesman Christopher Hayden said in an email to The Hill that this was not the first time Yellen expressed regret for calling inflation “transitory,” which she previously said during an interview with WBUR in January.
Headline inflation fell to 3.2 percent year-over-year in February from its 9.1 percent peak in June 2022, a significant improvement but still higher than the Fed’s mandate to keep price increases to 2 percent annually.
Fed Chair Jerome Powell, who was also dinged for initially calling inflation transitory, and the central bank have hiked interest rates from near-zero in March 2022 to a range of 5.25 percent to 5.5 percent to try to curb inflation by cooling demand.
While many economists feared the rate hikes could push the economy into a recession a year ago, it now looks like the U.S. economy could be coming in for a rare “soft landing,” the term for slowing down the economy just enough to bring down high prices without triggering a recession.
The runway for the soft landing may be a bit bumpy as inflation is proving to be stickier than usual, but Yellen, a former Fed chair, was optimistic about the overall downward trend in price pressures.
“I wouldn’t expect this to be a smooth path month to month, but the trend is clearly favorable,” Yellen said.
https://thehill.com/business/4529787-ye ... ome%20down.
Re: THE ECONOMY
THE CAPE CHARLES MIRROR MARCH 13, 2024 AT 6:11 PM
Paul Plante says:
And yesterday brought us two interesting pieces of news, one being a March 12, 2024 Statement from President Joe Biden on the February Consumer Price Index where Joe, a notorious serial liar and purveyor of myths and tall tales says his top economic priority is lowering costs, with the second being a Reuters article titled “US February budget deficit climbs on interest costs, tax refunds” on March 12, 2024, where we are informed by Joe’s own treasury department under BIDE-O-NOMICS architect Janet “TOODLES” Yellen of the harm BIDE-O-NOMICS and BIDE-O-NISM are doing to our nation, and our national security, as well as to the lives of common American citizens, while a third is a Reuters article titled “Gasoline, shelter costs boost US prices; inflation still slowing” by Lucia Mutikani on March 12, 2024, where we learned as follows about where Joe Biden’s BIDE-O-NOMICS has taken us as a nation and as a people, with this being the report Joe Biden is commenting on above as favoring BIDE-O-NOMICS, to wit:
WASHINGTON, March 12 (Reuters) – U.S. consumer prices increased solidly in February amid higher costs for gasoline and shelter, suggesting some stickiness in inflation that further diminishes the chances of a Federal Reserve interest rate cut before June.
end quote
What Joe then said in his Statement from President Joe Biden on the February Consumer Price Index, was as follows:
My top economic priority is lowering costs and today’s report shows we continue to make progress on that front.
Inflation is down two-thirds from its peak and annual core inflation is the lowest since May 2021.
end quotes
Except inflation is hardly down and in fact is continuing to rise, bringing prices up with it, which takes us back to Reuters on inflation, to wit:
The consumer price index rose 0.4% last month after climbing 0.3% in January, the Labor Department’s Bureau of Labor Statistics (BLS) said.
Gasoline prices rebounded 3.8% after declining 3.3% in January.
Shelter, which includes rents, rose 0.4% after advancing 0.6% in the prior month.
But prices for cereals and bakery products rose while meat, fish and eggs were slightly more expensive.
In the 12 months through February, the CPI increased 3.2%, after advancing 3.1% in January.
The annual increase in consumer prices has slowed from a peak of 9.1% in June 2022, but progress has stalled in recent months.
President Joe Biden used the report to drum up support for a $7.3 trillion budget unveiled on Monday.
“We have more to do to lower costs and give the middle class a fair shot,” Biden said in a statement.
“The budget I put forward yesterday would take on Big Pharma to lower prescription drug costs.”
Excluding the volatile food and energy components, the CPI increased 0.4% in February after rising by the same margin in January.
Shelter was also the main driver of the so-called core CPI.
Rents increased 0.5% after gaining 0.4% in January.
The cost of healthcare was unchanged after rising 0.5% in the prior month.
Airline fares accelerated 3.6% while motor vehicle insurance cost 0.9% more.
Services excluding energy increased 0.5% after shooting up 0.7% in January.
The rise in the so-called super core services excluding shelter slowed to 0.5% from 0.8% in the prior month.
Goods prices rebounded by 0.4% after falling 0.3% in January.
They were boosted by increases in the prices of apparel.
Used cars and trucks prices jumped 0.5%.
Core goods prices rose 0.1%, the first increase since last May, after falling 0.3% in January.
A separate report from the Atlanta Fed showed its sticky-price CPI, a weighted basket of items that change price relatively slowly, increased 4.0% on an annualized basis in February after rising 6.7% in January.
end quotes
Which takes us to March 12, 2024 and the Statement from President Joe Biden on the February Consumer Price Index, where we have this empty political blather from Joe, as follows:
Congressional Republicans have no plan to lower costs — their only plan is more tax giveaways for big corporations and the wealthy while cutting Social Security, Medicare, and Medicaid.
I won’t let them.
end quotes
Which takes us to the Reuters article titled “US February budget deficit climbs on interest costs, tax refunds” on March 12, 2024, where the reality of what continuing harm BIDE-O-NOMICS is doing to America thanks to Joe Biden’s OUT-OF-CONTROL PROFLIGATE SPENDING OF BORROWED MONEY, including Joe’s tax give-aways for big corporations, is made incandescently clear, to wit:
March 12 (Reuters) – The U.S. federal budget deficit grew in February with outlays surging as annual tax-filing season kicked into gear and interest costs on the national debt kept rising, the U.S. Treasury Department said on Tuesday.
The deficit last month was $296 billion, 13% larger than the $262 billion shortfall in February 2023.
Outlays for the month grew 8% to $567 billion – a record for the month – while receipts rose 3% to $271 billion.
For the first five months of the fiscal year, the deficit rose by $106 billion, or 15%, to $828 billion as interest costs on the national debt rose.
The Treasury said both receipts and outlays were records on a year-to-date basis, with receipts up 7% to $1.856 trillion, and outlays up 9% to $2.684 trillion.
Individual tax refunds, which are deducted from receipts, were $58 billion, up 11% from 12 months earlier.
Interest expenses on the $26 trillion national debt continue to grow rapidly, with debt-servicing costs up 67% from February 2023 to $76 billion, a record for the month.
On a year-to-date basis, interest on the public debt rose 41% to $433 billion and for the first five months of the fiscal year was exceeded only by Social Security in individual line item expenses.
The weighted-average interest rate on Treasury securities rose to 3.2% in February from 2.52% a year ago and 3.15% in January.
end quotes
And the rise in the weighted-average interest rate on Treasury securities which is taking debt servicing costs ever higher is directly related to the adverse impacts of BORROW-AND-SPEND BIDE-O-NOMICS.
Which brings us to time for a break for station identification, but don’t go away and don’t touch that dial, because we shall we right back with more of the story of how one man named Jospeh Robinette Biden, Junior is doing the seemingly impossible by single-handedly destroying America in just one presidential term.
http://www.capecharlesmirror.com/paul-p ... ent-907382
Paul Plante says:
And yesterday brought us two interesting pieces of news, one being a March 12, 2024 Statement from President Joe Biden on the February Consumer Price Index where Joe, a notorious serial liar and purveyor of myths and tall tales says his top economic priority is lowering costs, with the second being a Reuters article titled “US February budget deficit climbs on interest costs, tax refunds” on March 12, 2024, where we are informed by Joe’s own treasury department under BIDE-O-NOMICS architect Janet “TOODLES” Yellen of the harm BIDE-O-NOMICS and BIDE-O-NISM are doing to our nation, and our national security, as well as to the lives of common American citizens, while a third is a Reuters article titled “Gasoline, shelter costs boost US prices; inflation still slowing” by Lucia Mutikani on March 12, 2024, where we learned as follows about where Joe Biden’s BIDE-O-NOMICS has taken us as a nation and as a people, with this being the report Joe Biden is commenting on above as favoring BIDE-O-NOMICS, to wit:
WASHINGTON, March 12 (Reuters) – U.S. consumer prices increased solidly in February amid higher costs for gasoline and shelter, suggesting some stickiness in inflation that further diminishes the chances of a Federal Reserve interest rate cut before June.
end quote
What Joe then said in his Statement from President Joe Biden on the February Consumer Price Index, was as follows:
My top economic priority is lowering costs and today’s report shows we continue to make progress on that front.
Inflation is down two-thirds from its peak and annual core inflation is the lowest since May 2021.
end quotes
Except inflation is hardly down and in fact is continuing to rise, bringing prices up with it, which takes us back to Reuters on inflation, to wit:
The consumer price index rose 0.4% last month after climbing 0.3% in January, the Labor Department’s Bureau of Labor Statistics (BLS) said.
Gasoline prices rebounded 3.8% after declining 3.3% in January.
Shelter, which includes rents, rose 0.4% after advancing 0.6% in the prior month.
But prices for cereals and bakery products rose while meat, fish and eggs were slightly more expensive.
In the 12 months through February, the CPI increased 3.2%, after advancing 3.1% in January.
The annual increase in consumer prices has slowed from a peak of 9.1% in June 2022, but progress has stalled in recent months.
President Joe Biden used the report to drum up support for a $7.3 trillion budget unveiled on Monday.
“We have more to do to lower costs and give the middle class a fair shot,” Biden said in a statement.
“The budget I put forward yesterday would take on Big Pharma to lower prescription drug costs.”
Excluding the volatile food and energy components, the CPI increased 0.4% in February after rising by the same margin in January.
Shelter was also the main driver of the so-called core CPI.
Rents increased 0.5% after gaining 0.4% in January.
The cost of healthcare was unchanged after rising 0.5% in the prior month.
Airline fares accelerated 3.6% while motor vehicle insurance cost 0.9% more.
Services excluding energy increased 0.5% after shooting up 0.7% in January.
The rise in the so-called super core services excluding shelter slowed to 0.5% from 0.8% in the prior month.
Goods prices rebounded by 0.4% after falling 0.3% in January.
They were boosted by increases in the prices of apparel.
Used cars and trucks prices jumped 0.5%.
Core goods prices rose 0.1%, the first increase since last May, after falling 0.3% in January.
A separate report from the Atlanta Fed showed its sticky-price CPI, a weighted basket of items that change price relatively slowly, increased 4.0% on an annualized basis in February after rising 6.7% in January.
end quotes
Which takes us to March 12, 2024 and the Statement from President Joe Biden on the February Consumer Price Index, where we have this empty political blather from Joe, as follows:
Congressional Republicans have no plan to lower costs — their only plan is more tax giveaways for big corporations and the wealthy while cutting Social Security, Medicare, and Medicaid.
I won’t let them.
end quotes
Which takes us to the Reuters article titled “US February budget deficit climbs on interest costs, tax refunds” on March 12, 2024, where the reality of what continuing harm BIDE-O-NOMICS is doing to America thanks to Joe Biden’s OUT-OF-CONTROL PROFLIGATE SPENDING OF BORROWED MONEY, including Joe’s tax give-aways for big corporations, is made incandescently clear, to wit:
March 12 (Reuters) – The U.S. federal budget deficit grew in February with outlays surging as annual tax-filing season kicked into gear and interest costs on the national debt kept rising, the U.S. Treasury Department said on Tuesday.
The deficit last month was $296 billion, 13% larger than the $262 billion shortfall in February 2023.
Outlays for the month grew 8% to $567 billion – a record for the month – while receipts rose 3% to $271 billion.
For the first five months of the fiscal year, the deficit rose by $106 billion, or 15%, to $828 billion as interest costs on the national debt rose.
The Treasury said both receipts and outlays were records on a year-to-date basis, with receipts up 7% to $1.856 trillion, and outlays up 9% to $2.684 trillion.
Individual tax refunds, which are deducted from receipts, were $58 billion, up 11% from 12 months earlier.
Interest expenses on the $26 trillion national debt continue to grow rapidly, with debt-servicing costs up 67% from February 2023 to $76 billion, a record for the month.
On a year-to-date basis, interest on the public debt rose 41% to $433 billion and for the first five months of the fiscal year was exceeded only by Social Security in individual line item expenses.
The weighted-average interest rate on Treasury securities rose to 3.2% in February from 2.52% a year ago and 3.15% in January.
end quotes
And the rise in the weighted-average interest rate on Treasury securities which is taking debt servicing costs ever higher is directly related to the adverse impacts of BORROW-AND-SPEND BIDE-O-NOMICS.
Which brings us to time for a break for station identification, but don’t go away and don’t touch that dial, because we shall we right back with more of the story of how one man named Jospeh Robinette Biden, Junior is doing the seemingly impossible by single-handedly destroying America in just one presidential term.
http://www.capecharlesmirror.com/paul-p ... ent-907382
Re: THE ECONOMY
REUTERS
"US economy cooling in first quarter; inflation appears sticky"
By Lucia Mutikani
March 14, 2024
Summary
* Retail sales increase 0.6% in February
* Core retail sales unchanged, January data revised up
* Producer prices rise 0.6%; jump 1.6% year-on-year
* Weekly jobless claims fall 1,000 to 209,000
WASHINGTON, March 14 (Reuters) - U.S. retail sales rebounded less than expected in February, suggesting a slowdown in consumer spending in the first quarter amid rising inflation and high borrowing costs.
The signs of slowing economic activity are, however, unlikely to spur the Federal Reserve to start cutting interest rates before June as other data on Thursday showed a larger-than-expected increase in producer prices last month.
The labor market also remains fairly tight.
Fewer Americans applied for unemployment benefits last week and annual revisions to the weekly claims data showed laid-off workers were quickly finding new work and not spending as long a period of time on jobless benefits as had been previously thought.
"When the Fed is contemplating a series of rate cuts and is confronted by suddenly slower economic growth and suddenly brisker inflation, they will respond to the new news on the inflation side every time," said Chris Low, chief economist at FHN Financial.
"After all, this is not the first time in the past couple of years consumers have paused spending for a couple of months to catch their breath."
Retail sales rose 0.6% last month, the Commerce Department's Census Bureau said.
Data for January was revised lower to show sales tumbling 1.1% instead the previously reported 0.8%.
Sales in December were also downgraded.
Economists polled by Reuters had forecast retail sales, which are mostly goods and are not adjusted for inflation, would rise 0.8% in February.
They increased 1.5% on a year-on-year basis in February.
Sales last month were boosted by a 1.6% rebound in receipts at motor vehicles and parts dealers.
Sales at gasoline stations increased 0.9%, reflecting higher prices at the pump.
Receipts at electronics and appliance outlets surged 1.5%.
Building material and garden equipment store sales rebounded 2.2%.
But online sales dipped 0.1%.
There were also decreases in sales at clothing, health and personal care stores.
Furniture store sales decreased 1.1%.
Sales at sporting goods, hobby, musical instrument and book stores were unchanged.
Sales at food services and drinking places, the only services component in the report, rebounded 0.4% after dropping 1.0% in January.
Economists view dining out as a key indicator of household finances.
Households are increasingly focusing on essentials and cutting back on discretionary spending.
"There's ultimately more competition for consumers' dollars today while still-high prices for frequent purchases like food and gasoline may be diverting discretionary funds, just as higher interest payments may also be somewhat crowding out consumption," said Tim Quinlan, a senior economist at Wells Fargo.
Retail sales excluding automobiles, gasoline, building materials and food services were unchanged in February.
This so-called core retail sales measure corresponds most closely with the consumer spending component of gross domestic product.
Core sales for January were revised to show them decreasing 0.3% instead of the previously reported 0.4%.
Core sales in December were revised lower.
The data and an unexpectedly flat reading in business inventories in January prompted the Atlanta Fed to trim its first-quarter GDP growth estimate to a 2.3% annualized rate from a 2.5% pace.
The economy grew at a 3.2% rate in the fourth quarter, fueled by consumer spending.
Stocks on Wall Street were trading lower.
The dollar rose against a basket of currencies.
U.S. Treasury prices fell.
TIGHT LABOR MARKET
A separate report from the Labor Department on Thursday showed initial claims for state unemployment benefits fell 1,000 to a seasonally adjusted 209,000 for the week ended March 9.
Economists had forecast 218,000 claims for the latest week.
The number of people receiving benefits after an initial week of aid, a proxy for hiring, increased 17,000 to 1.811 million during the week ending March 2.
The government revised the data for both initial and so-called continuing claims from 2019 through 2023.
It also implemented new models to seasonally adjust both initial claims and continued claims this year and revised seasonal factors for both series from 2019 through 2023.
The level of continuing claims over the last year was revised sharply lower.
Data for January and February were also downgraded, aligning with strong payrolls growth that period.
"The revised data for continued claims are consistent with a job market that is showing some signs of loosening but is still relatively strong," said Nancy Vanden Houten, lead U.S. economist at Oxford Economics.
The U.S. central bank has raised its policy rate by 525 basis points to the current 5.25%-5.50% range since March 2022, and is expected to start lowering borrowing costs by June.
Another report from the Labor Department showed the producer price index for final demand rose 0.6% in February after advancing 0.3% in January.
Economists had forecast the PPI would climb 0.3%.
A 1.2% jump in goods prices accounted for nearly two-thirds of the increase in the PPI.
Wholesale gasoline prices rose 6.8%.
Food prices were up 1.0%.
In the 12 months through February, the PPI shot up 1.6% after advancing 1.0% in January.
The report followed news on Tuesday that consumer prices increased strongly for a second straight month in February.
Excluding food and energy, goods prices rose 0.3%, matching January's gain.
This suggests that goods deflation, the major driver of lower inflation, was drawing to an end and services would need to pick up the slack in easing price pressures.
Services gained 0.3% in February after rising 0.5% in the prior month.
A 3.8% increase in the cost of hotel and motel rooms accounted for a quarter of the rise in services prices.
There were also increases in the costs of outpatient care and airline tickets.
Portfolio management fees gained 0.2% after accelerating by 5.9% in January.
These are among the components that go into the calculation of the personal consumption expenditures (PCE) price indexes, the inflation measures tracked by the Fed for its 2% target.
Based on the CPI and PPI data, economists estimated that the core PCE price index increased 0.3% in February after gaining 0.4% in January.
Core inflation is forecast to rise 2.8% in February, which would match January's gain.
"The Fed will start its cutting cycle in June," said Stephen Juneau, an economist at Bank of America Securities.
"However, it will need to see more improvement in the upcoming inflation data to have enough confidence to begin to ease."
Reporting by Lucia Mutikani; Editing by Chizu Nomiyama and Paul Simao
https://www.reuters.com/markets/us/us-r ... 024-03-14/
"US economy cooling in first quarter; inflation appears sticky"
By Lucia Mutikani
March 14, 2024
Summary
* Retail sales increase 0.6% in February
* Core retail sales unchanged, January data revised up
* Producer prices rise 0.6%; jump 1.6% year-on-year
* Weekly jobless claims fall 1,000 to 209,000
WASHINGTON, March 14 (Reuters) - U.S. retail sales rebounded less than expected in February, suggesting a slowdown in consumer spending in the first quarter amid rising inflation and high borrowing costs.
The signs of slowing economic activity are, however, unlikely to spur the Federal Reserve to start cutting interest rates before June as other data on Thursday showed a larger-than-expected increase in producer prices last month.
The labor market also remains fairly tight.
Fewer Americans applied for unemployment benefits last week and annual revisions to the weekly claims data showed laid-off workers were quickly finding new work and not spending as long a period of time on jobless benefits as had been previously thought.
"When the Fed is contemplating a series of rate cuts and is confronted by suddenly slower economic growth and suddenly brisker inflation, they will respond to the new news on the inflation side every time," said Chris Low, chief economist at FHN Financial.
"After all, this is not the first time in the past couple of years consumers have paused spending for a couple of months to catch their breath."
Retail sales rose 0.6% last month, the Commerce Department's Census Bureau said.
Data for January was revised lower to show sales tumbling 1.1% instead the previously reported 0.8%.
Sales in December were also downgraded.
Economists polled by Reuters had forecast retail sales, which are mostly goods and are not adjusted for inflation, would rise 0.8% in February.
They increased 1.5% on a year-on-year basis in February.
Sales last month were boosted by a 1.6% rebound in receipts at motor vehicles and parts dealers.
Sales at gasoline stations increased 0.9%, reflecting higher prices at the pump.
Receipts at electronics and appliance outlets surged 1.5%.
Building material and garden equipment store sales rebounded 2.2%.
But online sales dipped 0.1%.
There were also decreases in sales at clothing, health and personal care stores.
Furniture store sales decreased 1.1%.
Sales at sporting goods, hobby, musical instrument and book stores were unchanged.
Sales at food services and drinking places, the only services component in the report, rebounded 0.4% after dropping 1.0% in January.
Economists view dining out as a key indicator of household finances.
Households are increasingly focusing on essentials and cutting back on discretionary spending.
"There's ultimately more competition for consumers' dollars today while still-high prices for frequent purchases like food and gasoline may be diverting discretionary funds, just as higher interest payments may also be somewhat crowding out consumption," said Tim Quinlan, a senior economist at Wells Fargo.
Retail sales excluding automobiles, gasoline, building materials and food services were unchanged in February.
This so-called core retail sales measure corresponds most closely with the consumer spending component of gross domestic product.
Core sales for January were revised to show them decreasing 0.3% instead of the previously reported 0.4%.
Core sales in December were revised lower.
The data and an unexpectedly flat reading in business inventories in January prompted the Atlanta Fed to trim its first-quarter GDP growth estimate to a 2.3% annualized rate from a 2.5% pace.
The economy grew at a 3.2% rate in the fourth quarter, fueled by consumer spending.
Stocks on Wall Street were trading lower.
The dollar rose against a basket of currencies.
U.S. Treasury prices fell.
TIGHT LABOR MARKET
A separate report from the Labor Department on Thursday showed initial claims for state unemployment benefits fell 1,000 to a seasonally adjusted 209,000 for the week ended March 9.
Economists had forecast 218,000 claims for the latest week.
The number of people receiving benefits after an initial week of aid, a proxy for hiring, increased 17,000 to 1.811 million during the week ending March 2.
The government revised the data for both initial and so-called continuing claims from 2019 through 2023.
It also implemented new models to seasonally adjust both initial claims and continued claims this year and revised seasonal factors for both series from 2019 through 2023.
The level of continuing claims over the last year was revised sharply lower.
Data for January and February were also downgraded, aligning with strong payrolls growth that period.
"The revised data for continued claims are consistent with a job market that is showing some signs of loosening but is still relatively strong," said Nancy Vanden Houten, lead U.S. economist at Oxford Economics.
The U.S. central bank has raised its policy rate by 525 basis points to the current 5.25%-5.50% range since March 2022, and is expected to start lowering borrowing costs by June.
Another report from the Labor Department showed the producer price index for final demand rose 0.6% in February after advancing 0.3% in January.
Economists had forecast the PPI would climb 0.3%.
A 1.2% jump in goods prices accounted for nearly two-thirds of the increase in the PPI.
Wholesale gasoline prices rose 6.8%.
Food prices were up 1.0%.
In the 12 months through February, the PPI shot up 1.6% after advancing 1.0% in January.
The report followed news on Tuesday that consumer prices increased strongly for a second straight month in February.
Excluding food and energy, goods prices rose 0.3%, matching January's gain.
This suggests that goods deflation, the major driver of lower inflation, was drawing to an end and services would need to pick up the slack in easing price pressures.
Services gained 0.3% in February after rising 0.5% in the prior month.
A 3.8% increase in the cost of hotel and motel rooms accounted for a quarter of the rise in services prices.
There were also increases in the costs of outpatient care and airline tickets.
Portfolio management fees gained 0.2% after accelerating by 5.9% in January.
These are among the components that go into the calculation of the personal consumption expenditures (PCE) price indexes, the inflation measures tracked by the Fed for its 2% target.
Based on the CPI and PPI data, economists estimated that the core PCE price index increased 0.3% in February after gaining 0.4% in January.
Core inflation is forecast to rise 2.8% in February, which would match January's gain.
"The Fed will start its cutting cycle in June," said Stephen Juneau, an economist at Bank of America Securities.
"However, it will need to see more improvement in the upcoming inflation data to have enough confidence to begin to ease."
Reporting by Lucia Mutikani; Editing by Chizu Nomiyama and Paul Simao
https://www.reuters.com/markets/us/us-r ... 024-03-14/
Re: THE ECONOMY
REUTERS
"Gasoline, food boost US producer prices in February"
Reuters
March 14, 2024
WASHINGTON, March 14 (Reuters) - U.S. producer prices increased more than expected in February amid a surge in the cost of goods like gasoline and food, which could fan fears that inflation was picking up again.
The producer price index for final demand rose 0.6% last month after advancing by an unrevised 0.3% in January, the Labor Department's Bureau of Labor Statistics said on Thursday.
Economists polled by Reuters had forecast the PPI climbing 0.3%.
A 1.2% jump in the prices of goods accounted for nearly two-thirds of the increase in the PPI.
Goods prices were driven by energy products, which surged 4.4% after declining 1.1% in January.
Goods prices had edged down 0.1% in January.
In the 12 months through February, the PPI shot up 1.6% after advancing 1.0% in January.
Government data on Tuesday showed consumer prices increasing strongly for a second straight month in February.
But economists largely shrugged off the rise, arguing that difficulties adjusting the data for price increases at the start of the year continued to exert an upward bias on inflation.
Wholesale gasoline prices rose 6.8% last month.
There were also increases in the prices of diesel and jet fuel.
But prices for hay, hayseeds, and oilseeds fell as did those for iron and steel scrap and asphalt.
Food prices rose 1.0%, amid increases in the costs of eggs and beef.
Excluding food and energy, goods prices rose 0.3%, matching January's gain.
This suggests that goods deflation, the major driver of lower inflation, was drawing to an end and services would need to pick up the slack in easing price pressure.
Services gained 0.3% in February after rising 0.5% in the prior month.
A 3.8% increase in the costs of hotel and motel rooms accounted for a quarter the increase in services prices.
There were also increases in the costs of outpatient care, airline tickets as well as securities brokerage, dealing and investment advice.
Portfolio management fees gained 0.2% after accelerating 5.9% in January.
Portfolio management fees, healthcare, hotel and motel accommodation, and airline fares are among components that go into the calculation of the personal consumption expenditures (PCE) price indexes.
The PCE price indexes are the inflation measures tracked by the Federal Reserve for it 2% target.
Financial markets expect the U.S. central bank to start cutting interest rates by June.
Since March 2022, the Fed has raised its policy rate by 525 basis points to the current 5.25%-5.50% range.
The narrower measure of PPI, which strips out food, energy and trade services components, rose 0.4% in February after climbing 0.6% in January.
The core PPI increased 2.8% year-on-year after gaining 2.7% in January.
Reporting by Lucia Mutikani; Editing by Andrea Ricci
https://www.reuters.com/markets/us/gaso ... 024-03-14/
"Gasoline, food boost US producer prices in February"
Reuters
March 14, 2024
WASHINGTON, March 14 (Reuters) - U.S. producer prices increased more than expected in February amid a surge in the cost of goods like gasoline and food, which could fan fears that inflation was picking up again.
The producer price index for final demand rose 0.6% last month after advancing by an unrevised 0.3% in January, the Labor Department's Bureau of Labor Statistics said on Thursday.
Economists polled by Reuters had forecast the PPI climbing 0.3%.
A 1.2% jump in the prices of goods accounted for nearly two-thirds of the increase in the PPI.
Goods prices were driven by energy products, which surged 4.4% after declining 1.1% in January.
Goods prices had edged down 0.1% in January.
In the 12 months through February, the PPI shot up 1.6% after advancing 1.0% in January.
Government data on Tuesday showed consumer prices increasing strongly for a second straight month in February.
But economists largely shrugged off the rise, arguing that difficulties adjusting the data for price increases at the start of the year continued to exert an upward bias on inflation.
Wholesale gasoline prices rose 6.8% last month.
There were also increases in the prices of diesel and jet fuel.
But prices for hay, hayseeds, and oilseeds fell as did those for iron and steel scrap and asphalt.
Food prices rose 1.0%, amid increases in the costs of eggs and beef.
Excluding food and energy, goods prices rose 0.3%, matching January's gain.
This suggests that goods deflation, the major driver of lower inflation, was drawing to an end and services would need to pick up the slack in easing price pressure.
Services gained 0.3% in February after rising 0.5% in the prior month.
A 3.8% increase in the costs of hotel and motel rooms accounted for a quarter the increase in services prices.
There were also increases in the costs of outpatient care, airline tickets as well as securities brokerage, dealing and investment advice.
Portfolio management fees gained 0.2% after accelerating 5.9% in January.
Portfolio management fees, healthcare, hotel and motel accommodation, and airline fares are among components that go into the calculation of the personal consumption expenditures (PCE) price indexes.
The PCE price indexes are the inflation measures tracked by the Federal Reserve for it 2% target.
Financial markets expect the U.S. central bank to start cutting interest rates by June.
Since March 2022, the Fed has raised its policy rate by 525 basis points to the current 5.25%-5.50% range.
The narrower measure of PPI, which strips out food, energy and trade services components, rose 0.4% in February after climbing 0.6% in January.
The core PPI increased 2.8% year-on-year after gaining 2.7% in January.
Reporting by Lucia Mutikani; Editing by Andrea Ricci
https://www.reuters.com/markets/us/gaso ... 024-03-14/
Re: THE ECONOMY
REUTERS
"US business inventories unchanged in January"
Reuters
March 14, 2024
WASHINGTON, March 14 (Reuters) - U.S. business inventories were unexpectedly unchanged in January as increases in stocks at retailers were offset by declines at manufacturers and wholesalers.
The unchanged reading in business inventories reported by the Commerce Department's Census Bureau on Thursday followed a 0.3% increase in December.
Economists polled by Reuters had expected inventories, a key component of gross domestic product, to rise 0.2%.
Inventories increased 0.4% year-on-year in January.
Private inventory investment subtracted 0.3 percentage point from GDP growth last quarter after providing a large boost in the third quarter.
The economy grew at a 3.2% annualized rate in the October-December quarter.
Growth estimates for the first quarter are converging around a 2.0% pace.
Retail inventories increased 0.4% in January, instead of the 0.5% estimated in an advance report published last month.
They advanced 0.6% in December.
Motor vehicle inventories climbed 0.8% as previously estimated.
They accelerated 1.1% in December.
Retail inventories excluding autos, which go into the calculation of GDP, increased 0.3% as reported last month.
They gained 0.4% in December.
Wholesale inventories dropped 0.3% in January, while stocks at manufacturers dipped 0.1%.
Business sales declined 1.3% in January after being unchanged in December.
At January' sales pace, it would take 1.39 months for businesses to clear shelves, up from 1.38 months in December.
Reporting by Lucia Mutikani; Editing by Andrea Ricci
https://www.reuters.com/markets/us/us-b ... 024-03-14/
"US business inventories unchanged in January"
Reuters
March 14, 2024
WASHINGTON, March 14 (Reuters) - U.S. business inventories were unexpectedly unchanged in January as increases in stocks at retailers were offset by declines at manufacturers and wholesalers.
The unchanged reading in business inventories reported by the Commerce Department's Census Bureau on Thursday followed a 0.3% increase in December.
Economists polled by Reuters had expected inventories, a key component of gross domestic product, to rise 0.2%.
Inventories increased 0.4% year-on-year in January.
Private inventory investment subtracted 0.3 percentage point from GDP growth last quarter after providing a large boost in the third quarter.
The economy grew at a 3.2% annualized rate in the October-December quarter.
Growth estimates for the first quarter are converging around a 2.0% pace.
Retail inventories increased 0.4% in January, instead of the 0.5% estimated in an advance report published last month.
They advanced 0.6% in December.
Motor vehicle inventories climbed 0.8% as previously estimated.
They accelerated 1.1% in December.
Retail inventories excluding autos, which go into the calculation of GDP, increased 0.3% as reported last month.
They gained 0.4% in December.
Wholesale inventories dropped 0.3% in January, while stocks at manufacturers dipped 0.1%.
Business sales declined 1.3% in January after being unchanged in December.
At January' sales pace, it would take 1.39 months for businesses to clear shelves, up from 1.38 months in December.
Reporting by Lucia Mutikani; Editing by Andrea Ricci
https://www.reuters.com/markets/us/us-b ... 024-03-14/
Re: THE ECONOMY
"Plug Power wins $75 million grant from DOE - The Latham hydrogen fuel cell company is getting grant to assist with research and manufacturing expansion"
By Larry Rulison, Albany, New York Times Union
March 13, 2024
COLONIE – Hydrogen fuel cell manufacturer Plug Power has been awarded $75.7 million in two grants from the U.S. Department of Energy to refine and expand its manufacturing output at factories it operates both here in the Capital Region and in Rochester.
U.S. Senate Majority Leader Chuck Schumer, D-NY, made the announcement Wednesday afternoon.
The DOE grant money will come out of the $1 trillion infrastructure bill that President Joe Biden signed in 2021.
Many of the grants coming through that bill focus on development of renewable energy sources and clean energy technologies being developed to combat climate change.
Schumer announced a total of $90 million in DOE grants on Wednesday going to Plug Power and two other upstate New York companies that are also focused on fuel cells and so-called green hydrogen used as fuel in the devices.
"With this federal funding, Plug Power and other cutting-edge companies will be able to increase production capacity and spark new innovation to reach the next frontier of clean hydrogen manufacturing and research, all while supporting good paying clean energy jobs and boosting the fight against climate change," Schumer said in a prepared statement.
The two other companies receiving grants are Rochester-based Ionomr Innovations and Ecolectro out of Ithaca.
Plug Power not only makes fuel cells but it also makes electrolizers that convert water into hydrogen.
When renewable energy is used to power such electrolyzers, they produce what is known as "green" hydrogen since it does not burn fossil fuels to produce hydrogen, which is typically made from methane using a process that releases carbon into the atmosphere.
Plug Power has an electrolyzer factory in Rochester that will benefit from a $45.7 million grant.
Another $30 million grant being awarded to Plug Power will allow the company to manufacture more heavy duty fuel cells.
Plug Power's fuel cells are used most commonly in fork lift trucks, but the company is also targeting commercial trucks and stationary power needs with larger fuel cells that can supply more power.
Plug Power opened a new, 407,000-square foot fuel cell factory in Slingerlands in the town of Bethlehem a year ago, and Albany County Executive Dan McCoy said last week in a radio interview that he would have a "huge" announcement about Plug's operations in Slingerlands.
It is unclear if the DOE grant will be used to expand the Slingerlands facility to make larger fuel cells.
Plug Power officials have declined to say what announcement McCoy is planning.
"This funding will advance Plug’s fuel cell and electrolyzer manufacturing capabilities, create good paying jobs in New York, and fortify the region’s leadership in the national clean energy transition," Plug Power CEO Andy Marsh said in a statement Wednesday.
https://www.timesunion.com/business/art ... 965307.php
By Larry Rulison, Albany, New York Times Union
March 13, 2024
COLONIE – Hydrogen fuel cell manufacturer Plug Power has been awarded $75.7 million in two grants from the U.S. Department of Energy to refine and expand its manufacturing output at factories it operates both here in the Capital Region and in Rochester.
U.S. Senate Majority Leader Chuck Schumer, D-NY, made the announcement Wednesday afternoon.
The DOE grant money will come out of the $1 trillion infrastructure bill that President Joe Biden signed in 2021.
Many of the grants coming through that bill focus on development of renewable energy sources and clean energy technologies being developed to combat climate change.
Schumer announced a total of $90 million in DOE grants on Wednesday going to Plug Power and two other upstate New York companies that are also focused on fuel cells and so-called green hydrogen used as fuel in the devices.
"With this federal funding, Plug Power and other cutting-edge companies will be able to increase production capacity and spark new innovation to reach the next frontier of clean hydrogen manufacturing and research, all while supporting good paying clean energy jobs and boosting the fight against climate change," Schumer said in a prepared statement.
The two other companies receiving grants are Rochester-based Ionomr Innovations and Ecolectro out of Ithaca.
Plug Power not only makes fuel cells but it also makes electrolizers that convert water into hydrogen.
When renewable energy is used to power such electrolyzers, they produce what is known as "green" hydrogen since it does not burn fossil fuels to produce hydrogen, which is typically made from methane using a process that releases carbon into the atmosphere.
Plug Power has an electrolyzer factory in Rochester that will benefit from a $45.7 million grant.
Another $30 million grant being awarded to Plug Power will allow the company to manufacture more heavy duty fuel cells.
Plug Power's fuel cells are used most commonly in fork lift trucks, but the company is also targeting commercial trucks and stationary power needs with larger fuel cells that can supply more power.
Plug Power opened a new, 407,000-square foot fuel cell factory in Slingerlands in the town of Bethlehem a year ago, and Albany County Executive Dan McCoy said last week in a radio interview that he would have a "huge" announcement about Plug's operations in Slingerlands.
It is unclear if the DOE grant will be used to expand the Slingerlands facility to make larger fuel cells.
Plug Power officials have declined to say what announcement McCoy is planning.
"This funding will advance Plug’s fuel cell and electrolyzer manufacturing capabilities, create good paying jobs in New York, and fortify the region’s leadership in the national clean energy transition," Plug Power CEO Andy Marsh said in a statement Wednesday.
https://www.timesunion.com/business/art ... 965307.php