The elite wall street investment banks smashed earning expectations on Tuesday, while the American worker struggles with rising consumer good prices due to President Joe Biden’s inflation.
JPMorgan Chase posted “second-quarter earnings of $11.9 billion, or $3.78 per share, which exceeded the $3.21 estimate of analysts surveyed by Refinitiv,” CNBC reported.
Goldman Sachs also “reported second-quarter earnings of $15.02 per share, topping analysts’ expectation of $10.24 earnings per share,” CNBC continued, “The bank posted its second-best ever quarterly investment banking revenue as a rush of IPOs hit Wall Street last quarter.”
The investment banks shattering expectations comes as the American worker is shouldering inflation at a 13 year-high.
The Labor Department on Tuesday released its Consumer Price Index for June, showing that prices rose 0.9 percent in the past month. The price hike in June marked the largest 1-month increase since June 2008.
Breitbart News also reported the the consensus forecast was for a 5.0 percent gain when measured against June of 2020, which would have been tied with May, the hottest reading since skyrocketing energy prices pushed up the index in the fall of 2008.
Inflation has outrun expectations for three months in a row. The June monthly figure is the highest since June 2008, when prices increased 1 percent in a single month.
Sarah House, senior economist for Wells Fargo’s corporate and investment bank, said “inflation pressures remain more acute than appreciated and are going to be with us for a longer period.”
“Bringing back the bad memories of the 1970s, inflation has reached a three-decade high,” the CNBC continued. “The past two years’ ’emergency’ spending packages, bond buy-backs, and printed money are repeating the worst mistakes of the Carter era.”
Since President Joe Biden has taken office, prices for consumer goods have dramatically risen:
- Used Cars (29 percent)
- Strawberries (26 percent)
- Blueberries (15 percent)
- Baguette (11 percent)
- Furnature (9 percent)
- Olives (6 percent)
- Takeout/fast food (6 percent)
- Tampons (5 percent)
- Flowers/plants (5 percent)
- Dog treats (4 percent)
- Rose wine (3 percent)
- Computers (2 percent)
- Craft beer (2 percent)
- Milk (1.6 percent)
- Bread (1.3 percent)