IRS Mileage Rate Increase, S&P 500, and Gas Prices

Tax Policy:

June 10: Jumps at the pump prompt IRS mileage rate increase

Fueled by rising gas prices, the optional standard mileage rate will jump for the rest of this year, effective July 1.  For the second half of 2022, the standard mileage rate for business travel will be 62.5 cents per mile, up 4 cents from the rate effective at the start of the year, the IRS announced.

The new rate for deductible medical or moving expenses for active-duty members of the military will be 22 cents for the remainder of 2022, up 4 cents from the rate at the start of the year. The 14 cents-per-mile rate for charitable organizations, set by statute, remains unchanged.

The IRS normally updates the mileage rates once a year in the fall for the next calendar year but made an exception this year due to rising gasoline prices. Other items affect the calculation of mileage rates, such as depreciation, insurance, and other fixed and variable costs. The IRS hasn’t made such a mid-year mileage increase in 11 years.

The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage. For travel through June 30, taxpayers should use the rates in Notice 2022-03.

June 9: Global minimum tax advances in EU, faces midterms in the U.S.

With the year nearly half over and deadlines approaching for progress on an international agreement designed to ensure that large multinationals pay a global corporate minimum tax rate of 15% in countries where they operate, different tax jurisdictions are chipping away at various obstacles to their adoption.

In March, Poland, Sweden, Estonia, and Malta rejected the minimum tax. Here in the U.S., Congress is not yet on track to align with the international tax agreement.

"It would be more difficult to accomplish it by a multilateral treaty, requiring ratification by two-thirds of the Senate, than with a bill. But either way, the Senate would need to be involved." While there may not be a deadline, in fact, there may be a political deadline, according to Simmens. "Part of the issue from the U.S. perspective is whether we can get bipartisan support in the Senate. I don't think reconciliation will happen any longer before the November midterm elections, so it would have to be a standalone tax bill which would be subject to filibuster," he said.

"And if either or both houses flip, there won't be anything like Build Back Better, but there will be continued support to do something. At this stage, the question is, 'What will it be?' It will have to be negotiated because whatever is passed will need the president's signature." One point in favor of adopting U.S. tax policy to the global agreement is that it could help offset revenue losses from the Tax Cuts and Jobs Act, said Simmens.

"There's a ballpark estimate that adopting Pillar Two would increase U.S. revenue by $100 billion." He noted that the Joint Committee does not use dynamic scoring in evaluating the revenue effects of tax policy.

Economic News/Policy: 

June 14: The S&P 500 is in a bear market; here’s what that means

A bear market is a term used by Wall Street when an index like the S&P 500, the Dow Jones Industrial Average, or even an individual stock, has fallen 20% or more from a recent high for a sustained period of time. Why use a bear to represent a market slump? Bears hibernate, so bears represent a market that's retreating, said Sam Stovall, chief investment strategist at CFRA. In contrast, Wall Street's nickname for a surging stock market is a bull market, because the bulls charge, Stovall said.

The Dow industrials sank 2.8% and the tech-heavy Nasdaq composite, which already was in a bear market, tumbled 4.7%. The most recent bear market for the S&P 500 ran from February 19, 2020, through March 23, 2020.

Stocks have declined almost 35% on average when a bear market coincides with a recession, compared with a nearly 24% drop when the economy avoids a recession, according to Ryan Detrick, the chief market strategist at LPL Financial.

HOW LONG DO BEAR MARKETS LAST AND HOW DEEP DO THEY GO? On average, bear markets have taken 13 months to go from peak to trough and 27 months to get back to breakeven since World War II. The S&P 500 index has fallen an average of 33% during bear markets in that time.

The biggest decline since 1945 occurred in the 2007-2009 bear market when the S&P 500 fell 57%. History shows that the faster an index enters into a bear market, the shallower they tend to be.

Historically, stocks have taken 251 days to fall into a bear market.

June 13: Stock Market Selloff Worsens Ahead Of Fed Meeting This Week

U.S. stock markets continued their sharp decline Monday as investment losses kept piling up, creating an economic vise for many Americans who find themselves pinched between rising gas prices and diminishing investment accounts.

Sustained stock market sell-offs have, in the past, led to broader recessionary pressures, forcing households to pull back on things like home-improvement projects and travel.

Monday's decline puts the S&P 500 back in the bear market territory, defined as a 20 percent fall from the most recent high after it briefly touched the benchmark in intraday trading last month. Sustained market sell-offs, like the one washing through the stock market, create a major conundrum for retail investors, many of whom now find themselves staring at 401(k) statements or investment accounts in disbelief.

The prospect of losing more than 20 cents on every dollar invested as a bear market indicates can trigger a certain panic in the mind of the investor, von Lipsey said.

The downturn is likely to last several months, and the bottom of the market can't be trusted until the Fed indicates that it is almost done tightening up interest rates, said Michael Farr of the D.C.-based advisory firm Farr, Miller and Washington. Manufacturers weren't spared either: General Motors lost 7.8 percent, while Boeing stock declined 8.8 percent.

June 13: The Fed May Discuss the Biggest Interest Rate Increase Since 1994

The Fed raised rates by half a percentage point in May and officials had suggested for weeks that a similar increase would be warranted at their meetings in June and July if data evolved as expected. But costs have not behaved as anticipated.

Instead, a report last week showed that inflation re-accelerated in May and is running at the fastest pace since 1981. Two separate measures of inflation expectations, one out last week and another released Monday, showed that consumers were beginning to anticipate notably faster price increases.

While the economy is strong now, a slump that erases some of the recent solid progress in the job market would be bad news for President Biden, whose approval ratings have already swooned amid inflation's rise.

Still, the White House has been sure to emphasize that the Fed is independent and that it will respect its ability to do what it deems necessary to bring inflation under control. Officials have increasingly emphasized that a strong job market with runaway price increases is far from stable and that getting inflation under control is a precondition for a truly healthy labor market.

In the 1970s, economists believe, Americans began to expect faster inflation and demand bigger wage increases, setting off a chain reaction that fed on itself and pushed prices ever higher.

"We can't allow a wage-price spiral to happen, and we can't allow inflation expectations to become unanchored," Mr. Powell, the Fed chair, said during a news conference with reporters after the central bank's May meeting. The Fed has been in its pre-meeting blackout period, during which its officials do not give remarks on monetary policy, for several key data releases - including the latest hot inflation reading.

June 13: Why Biden’s bet on a rapid economic rebound may have backfired

President Biden's bet on a rapid rebound from the coronavirus recession may have backfired. Despite the rapid rebound, Biden's approval rating is at all-time lows as Americans feel the brunt of high inflation - a risk few within and beyond the administration took seriously when he signed the American Rescue Plan.

Prices for food, gasoline, shelter, and travel led to the May inflation burst, giving Americans few ways to avoid higher prices. 

It’s a risk voters are feeling. Eighty-five percent of voters said they think inflation is a very serious or somewhat serious problem, according to an Economist-YouGov poll from earlier this month. In the same poll, 44 percent of respondents said Biden has "a lot" of responsibility for the inflation rate, and 31 percent said he has "Some."

Top Biden administration and Fed officials - along with dozens of economists - expected inflation to cool off last year as the world adjusted to life after COVID-19.

Amarnath, of Employ America, said Biden should work with the industry to increase output through agreements to purchase oil for the Strategic Petroleum Reserve at set prices, giving them cover if market prices for oil go down amid the glut of products.

Sahm, the former Fed research director, also expressed concerns about Biden's plan to lean on the Fed to bring down inflation when much of the forces driving prices higher are beyond the bank's control.

June 12: Economy Week Ahead: Fed, Other Central Banks in Focus

Wednesday: China’s economic activity showed some signs of recovery in May, albeit at a slow pace, as Beijing, Shanghai and other big cities continued to endure pandemic restrictions. Economists surveyed by The Wall Street Journal estimate that retail sales, a key gauge of consumption, fell 6.9% from a year earlier in May, narrowing from an 11.1% decline in April. Industrial production is forecast to have fallen 1.0% last month, compared with April’s 2.9% decrease. Economists expect fixed-asset investment rose 6.1% in the first five months of the year, slowing from a 6.8% increase in the January-April period.

U.S. retail sales are expected to have increased for the fifth straight month in May, pushed higher in part by rising prices for gasoline and other goods. Wild cards include a potential drop in auto sales and a consumer shift toward spending more on services such as dining out and travel than on furniture, electronics, and other goods. The Commerce Department’s report captures retail sales at restaurants and bars but not spending on other services.

Federal Reserve officials have indicated that they will raise the central bank’s benchmark interest rate by half a percentage point for the second time in two meetings—and follow with a third such increase in July to tamp down inflation running at a four-decade high. With those expectations firmly set, attention will turn to Chairman Jerome Powell’s news conference and new economic projections for the future path of rates, inflation, and unemployment.

Thursday: The Bank of England is expected to raise its key interest rate to 1.25% from 1%, which would be its fifth move in as many meetings as policymakers aim to contain surging inflation without pushing a weakening economy into a deep contraction.

Rising interest rates have hit the U.S. housing market, making mortgages more expensive and homes less affordable, as well as curtailing sales. That could be seeping into the construction industry. Economists estimate that housing starts fell for the third consecutive month in May.

Friday: The Bank of Japan is expected to keep its ultra-easy monetary policy on hold. The bank has said the Japanese economy needs stimulus because it is still recovering from the pandemic, and recent inflation is mainly caused by one-time factors, such as higher energy prices, and isn’t sustainable.

June 12: Summers: Recession ‘more likely than not’ in next two years

Former Treasury Secretary Larry Summers said on Sunday that a recession is likely in the next year or two. Summers said he disagreed with current Treasury Secretary Janet Yellen that a recession is not "In the works."

Yellen on Thursday dismissed concerns of an impending recession as the Federal Reserve looks to increase interest rates, which makes the cost of borrowing more expensive while trying to avoid a major economic downturn.

"I think there's certainly a risk of recession in the next year," Summers told CNN "State of the Union" co-anchor, Dana Bash. "I think given where we've gotten to, it's more likely than not that we'll have a recession within the next two years," he continued.

Summers in May 2021 warned about "Very substantial risks on the inflation side" and characterized Biden's fiscal stimulus as "Rather overdoing it," a concern he reiterated on Sunday.

"I don't think it's likely to fall back very, very rapidly," Summers said.

"It's hypocrisy in the extreme when people say we need to stand strongly with Ukraine and then blame the administration for the fact that gas prices are higher than they were a year ago," Summers said on CNN. "I've been disappointed by some of the almost demagogic statements that have been made in that regard."

June 10: Inflation Sped Up Again in May, Dashing Hopes for Relief

A surge in prices in May delivered a blow to President Biden and underscored the immense challenge facing the Federal Reserve as inflation, which many economists had expected to show signs of cooling, instead reaccelerated to climb at its fastest pace since late 1981. Consumer prices rose 8.6 percent from a year earlier and 1 percent from April - a monthly increase that was more rapid than economists had predicted and about triple the previous pace.

Friday's Consumer Price Index report offered more reason for worry than comfort for Fed officials, who are watching for signs that inflation is cooling on a monthly basis as they try to guide price increases back down to their goal. As climbing prices weigh on voters' wallets and minds, policymakers across the administration have been clear that helping to return inflation to a more sustainable pace is their top priority, but that doing so mainly falls to the Fed. Economists warn that wrestling inflation lower could be a slow and painful process.

Housing indexes makeup about a third of overall inflation and generally move slowly, so they could put continued pressure on inflation in the months ahead. A recent jump in rents on new leases tracked by private data providers means housing costs will probably continue to climb for some time, as renters renew or move and face higher market costs.

Wages are not keeping up with inflation - average hourly earnings climbed 5.2 percent over the year through May, well short of price increases - but those cash buffers could help families to spend through higher prices and interest rates.

June 10: Stocks fall sharply on inflation news

Stock markets fell sharply Friday in response to news that inflation is continuing to rise, hitting a 40-year year high of 8.6 percent.

The Dow Jones Industrial Average of major U.S. stocks fell nearly 2.75 percent to hit 31,392. The S&P 500 index fell 2.91 percent to 3,900, and the technology-heavy Nasdaq dropped more than 3.5 percent to fall below 11,340.

The bottom fell out of markets as a result of the latest consumer price index data from the U.S. Department of Labor.

Analysts were hoping that the CPI would continue to decrease as it did last month from an annual rate of 8.5 percent in March to 8.3 percent in April.

Instead, the CPI gained 0.3 percentage points from April to hit 8.6 percent in May. The rise constitutes a major blow to investor confidence since it shows that prices, which have jumped as most pandemic-related restrictions have been lifted, have yet to hit a ceiling and could continue to rise.

President Biden, who has said that fighting inflation is his top economic priority, spoke at the Port of Los Angeles on Friday, a site of many of the shipping bottlenecks and supply chain shocks that have been the core driver of rising prices.

June 10: As Gas Prices Near $5 A Gallon, Inflation Is Expected To Remain At 40-Year Highs

Inflation in May reached a new pandemic-era peak of 8.6 percent compared with a year earlier, with soaring energy, housing, and food prices driving up costs at the fastest pace in 40 years. The stunning run-up in gas prices has become one of the most visceral ways people feel inflation in their daily lives.

Months of tough inflation reports have put pressure on the Biden administration and Federal Reserve to stabilize prices.

The Biden administration has declared inflation its top economic priority and has taken steps to lower prices at the pump, by tapping the Strategic Petroleum Reserve and allowing blended biofuels to be sold.

"Today's report underscores why I have made fighting inflation my top economic priority," the statement read. "Even as we continue our work to defend freedom in Ukraine, we must do more - and quickly - to get prices down here in the United States."

While inflation has weighed on all households, higher prices have dealt a particularly tough blow to lower-income families, many of whom have exhausted safety nets and cushions built up from last year's stimulus programs. Most Americans expect inflation to get worse in the next year and are adjusting their spending habits in response to rising prices, according to a poll conducted by The Washington Post and George Mason University's Schar School of Policy and Government.

June 8: Democrats frustrated by flat-footed White House

Democrats are growing increasingly frustrated by what they say is a flat-footed White House that is slow to catch up on solving a seemingly never-ending cascade of problems in the face of an unrelenting news cycle. They point to the recent baby formula shortage as the latest example of how President Biden has failed to get ahead of the story, allowing Republicans to set the narrative as yet another failure for the White House.

Democrats were also miffed when the White House was caught off guard when a federal judge in Florida lifted the mask mandate on airlines in April and also when a leaked draft of the Supreme Court decision to overturn Roe v. Wade was made public, even though both were events that surprised Washington more broadly - not just the White House.

The White House routinely defends Biden and the administration's response to the baby formula shortage, highlighting his invoking the Defense Production Act to have baby formula flown into the U.S. at least five times in recent weeks. Speaking to reporters during a briefing last week, White House press secretary Karine Jean-Pierre acknowledged that Biden is juggling "Multiple crises" at one time.

Biden did deliver a speech the night of the shooting after returning from the White House from a multi-day trip to Asia, but it was less focused on pushing for specific legislative actions and more about pleading with the public to find an end to mass shootings devastating the country. Galston, a former domestic policy aide in the Clinton White House, noted that the Biden administration has been "Consistently ahead of the curve" when it comes to the conflict in Ukraine, something he said has served Biden well.

June 7: World Bank slashes growth forecast, warns of stagflation

The World Bank slashed its forecast for global economic growth Tuesday and warned the world could face "a protracted period of feeble growth and elevated inflation" due largely to the fallout from the war in Ukraine. Economists at the World Bank expect the global gross domestic product to rise 2.9 percent in 2022, down from the 4.1 percent growth rate the bank projected in January and a 5.7 percent jump in GDP last year.

"Amid the war in Ukraine, surging inflation, and rising interest rates, global economic growth is expected to slump in 2022. Several years of above-average inflation and below-average growth are now likely, with potentially destabilizing consequences for low- and middle-income economies," wrote World Bank Group President David Malpass.

"It's a phenomenon - stagflation - that the world has not seen since the 1970s."

The Federal Reserve and central banks around the world are attempting to avoid a repeat of the late 1970s and early 80s: years of sluggish growth and high inflation followed by a deep recession.

"Subdued growth will likely persist throughout the decade because of weak investment in most of the world. With inflation now running at multi-decade highs in many countries and supply expected to grow slowly, there is a risk that inflation will remain higher for longer than currently anticipated," Malpass said. Malpass noted three major differences between the stagflation of the late 1970s and the current moment-all of which break in favor of a softer landing: The value of the U.S. dollar compared to other currencies is far higher, oil prices are much lower, and central banks are far more serious about fighting inflation now than during the run-up to the 1980s meltdown.

Global Trade:

June 8: Business lobby presses Biden to nix China tariffs

Business groups are aggressively lobbying President Biden to undo tariffs on hundreds of billions of dollars worth of Chinese imports, arguing that doing so would help ease inflation. Biden administration officials are divided over the issue, with some disputing the notion that tariff relief would significantly impact inflation, and labor unions with close ties to the president pushing the White House to keep the tariffs in place.

Still, business lobbyists say that right now is their best chance yet to convince Biden to lessen or outright ax China tariffs first imposed by the Trump administration in 2018 and 2019.

Lifting the tariffs, which apply to roughly $335 billion in Chinese goods, would boost the bottom line of some of the largest retailers, manufacturers, tech giants, and other U.S. companies that pay tariffs of up to 25 percent to import affected goods from China.

Tai, who doesn't want to lose leverage in trade negotiations with China by lifting tariffs, has diverged from other Biden officials, including Treasury Secretary Janet Yellen, who said last month that some of the China tariffs "Imposed more harm on consumers and businesses."

Business groups are hopeful that Biden's decision on Monday to waive tariffs on solar panel imports from Southeast Asia is a signal that the White House agrees tariffs can damage key industries. Corporate lobbyists are pushing for widespread reductions or lifting of China tariffs, but they would settle for a measure to make it easier for U.S. companies to be exempted from tariffs as a consolation prize.

Ukraine Crisis/Russia’s Economic Impact: 

June 11: Momentum in Ukraine Is Shifting in Russia’s Favor

A war in Ukraine that began with a Russian debacle as its forces tried and failed to take Kyiv has seemingly begun to turn, with Russia now picking off regional targets, Ukraine lacking the weaponry it needs, and Western support for the war effort fraying in the face of rising gas prices and galloping inflation.

On the 108th day of President Vladimir V. Putin's unprovoked war, driven by his conviction that Ukraine is territory unjustly taken from the Russian Empire, Russia appeared no closer to victory.

While Ukraine is holding Russia back in the major regional city of Sievierodonetsk, it is suffering heavy losses - at least 100 fatalities a day, though their full extent is not yet known - and desperately needs more weapons and ammunition.

Russia has its difficulties, particularly in southern Ukraine, where the provincial capital of Kherson captured earlier in the war is still contested.

The American defense secretary, Lloyd J. Austin III, on a visit to Asia to warn of potential Chinese aggression against Taiwan, tried on Saturday to shore up support for the West's ardent backing of Ukraine against the Russian invasion. Speaking at a security summit in Singapore, Mr. Austin said that Russia's invasion was "What happens when oppressors trample the rules that protect us all." He spoke after Mr. Zelensky had expressed concern in his nightly address that the world's attention may drift away from Ukraine.

The result is grinding deadlock, a far cry from Mr. Putin's apparent initial conviction that Russian forces would stroll into Kyiv, Ukraine's capital, to a warm welcome.

June 7: Asia may provide a market for Russian oil after EU ban

The EU on Friday officially agreed to ban imports of most oil from Russia, joining countries, including the U.S., who have vowed to forgo oil from the country. "The bigger question is, how easy is it going to be for that Russian oil to make it to a country like China and India, which will probably continue to buy?" De Haan said, adding that it's "Kind of shifting oil purchases and consumption around."

She said that alarms in the market may raise oil prices in the near term, giving Russia a benefit as it sells oil for now, and the country will also be able to work with other countries like India that are likely to buy the oil.

Ben Cahill, a senior fellow at the Center for Strategic and International Studies, said that despite the limitations, the EU sanctions are probably the most significant action that the world has taken to date to limit the use of Russian oil.

"The big question is how much will this knock Russian oil offline and how much will it just redirect Russian oil from Europe to Asia.".

Given the tight oil market, he warned, "Secondary sanctions that tried to take Russia out of the global oil market would have a huge impact on everyone, and I think it would be extremely controversial and pretty risky."

The EU is far more reliant on Russian oil than the U.S. As part of the sanctions package, the EU included several exemptions to smooth the transition, including Bulgaria, which will be allowed to import crude and refined oil by sea through the end of 2024 due to its "Specific geographical exposure." Croatia will be permitted to import the Russian oil needed to operate its refineries through 2023.

June 7: Why the fertilizer market could be Russia’s hidden leverage

Economists and policymakers say Russia may have some thus far hidden leverage on Ukraine - and the global food supply. A shift in Russian fertilizer policy could go a step further, leading to problems with food production in addition to distribution.

In 2019, Russia exported 5.5 billion kilograms of these fertilizers, more than double the amount of the second-biggest exporter, the European Union, and nearly four times as much as the third biggest exporter, Belgium, according to figures from the World Bank.

"Fertilizer has, as you know, has become a huge problem, and Russia is a large fertilizer exporter. They just need to open up their markets and end this war, end the blockade that they are responsible for and allow food to flow," U.S. Ambassador to the U.N. Linda Thomas-Greenfield told the BBC last month.

Countries most reliant on nitrogen-based fertilizer exports from Russia and Russia-allied Belarus include Singapore, Mongolia, and Panama, with the U.S. receiving more than 20 percent of its imported fertilizers from the two countries, according to German market research firm Statista.

"So as fertilizer prices surge, folks need alternatives, and this is going to help address this. It's also going to further conservation practices. It's going to reduce fertilizer use, lower costs."

While Russia has denied that its invasion has contributed to a food crisis, the U.N.'s FAO blames the conflict in no uncertain terms.

Environmental/Energy Policy/News:

June 14: Why Gas Prices Are So High

Gas prices in the United States are at record highs. And even when adjusting for inflation, they are on average at levels rarely seen in the last 50 years, including during the energy crisis of the late 1970s. When fuel prices go up, consumers are hurt directly at the pump, but also indirectly when higher transportation costs raise prices on everything from food to diapers to construction materials.

To help ease this growing crisis, President Biden is asking U.S. oil companies and other large producers of oil to increase their output, but it is not having much success. That’s because oil executives are fearful that the price could fall if they increase production too much. And countries like Saudi Arabia and the United Arab Emirates cannot quickly ramp up output enough to offset the expected drop in Russian supplies.

Why the No. 1 oil country is producing less oil. Even before the invasion, prices of oil and gasoline were rising as the world gradually recovered from the Covid pandemic. For a brief moment in 2020, the cost of a barrel of oil fell below zero because storage tanks were full from the lack of demand. Now, commuters and vacationers are back on the road, and offices and industries have reopened.

There has been two oil price crashes in the past eight years, and many executives believe that another one is inevitable. That has made them hesitant to drill new wells and seriously ramp up production, said Christopher Knittel, an energy economist at the Massachusetts Institute of Technology. The lack of investment has led to a decline in output in recent years.

As the war in Ukraine drags on and Russian production drops, analysts have suggested that the energy market could be fundamentally rewired. Over time, that change in the flow of oil could reduce Russia’s leverage over Europe. But until more supply comes online or demand falls, prices at the pump will likely stay high.

June 11: Gas prices present a glaring problem for Biden

Skyrocketing gas prices are a glaring problem for the White House with no clear, immediate solution. While the administration began the month by pivoting heavily toward its economic message, political watchers say the attempt has so far fallen flat, especially as the national average for a gallon of gas hits a record $5. That, along with inflation, presents a major political challenge for Biden and Democrats going into the midterms.

Biden has ordered the release of millions of barrels of oil from the Strategic Petroleum Reserve to boost supply, pushed for nations in the Middle East to boost production, lifted restrictions on the sale of fuel with higher ethanol content, and promoted renewable energy sources such as electric vehicles and solar power.

But the reality, as even some Biden administration officials acknowledge, is the president has little sway over day-to-day gas prices, which are often at the mercy of global supply chains and have been impacted by the Russian invasion of Ukraine.

"Since Putin moved troops to the border of Ukraine, gas prices have gone up over $1.40 a gallon, and the president is asking for Congress and others for potential ideas. But, as you say, the reality is that there isn't very much more to be done."

Friday delivered another blow to the Biden administration with the release of a poor inflation report that showed consumer price growth spiked in May. The Labor Department's consumer price index rose 1 percent last month alone and 8.6 percent in the 12-month stretch ending in May. Republican strategist Doug Heye argued the Biden administration has had a lackluster response to inflation that has contributed to the hit his approval rating has taken and the low marks he has received on the economy.

“I understand Americans are anxious, and they’re anxious for good reason,” President Biden said in remarks at the Port of Los Angeles. “Make no mistake about it: I understand inflation is a real challenge to American families,” he added. "Today's inflation report confirmed what Americans already know: Putin's price hike is hitting America hard. Gas prices at the pump, energy and food prices account for half of the monthly price increases since May."

Part of the challenge for the White House is that many Americans don't realize Biden doesn't control gas prices, said Matt Bennett, a strategist with centrist think tank Third Way.

ICYMI: 

June 13: Celsius Network Leads Crypto Markets Into Another Free Fall

On Sunday night, as cryptocurrency prices slid, Celsius became the latest crypto venture to spiral into a crisis, announcing that it was freezing withdrawals "Due to extreme market conditions." Celsius has emerged as one of the best-funded and most popular investment options for Defi speculators.

Founded in 2017 by the businessmen Alex Mashinsky and Daniel Leon, Celsius accepts deposits of Bitcoin, Ether, and other cryptocurrencies, and then invests them, generating returns that are paid back to the depositors.

"For Celsius, like the rest of the crypto marketplace, there exists no regulatory oversight, no consumer protections, no net capital requirements," said John Reed Stark, a former Securities and Exchange Commission official and a vocal critic of the industry.

With the prices of Bitcoin and Ether already tumbling, Celsius announced on Sunday that it was freezing withdrawals. Celsius is one of several DeFi start-ups that are coming under intense scrutiny as crypto prices drop.

Hilary Allen, a finance expert at American University, said the Terra and Celsius crisis showed that the fate of crypto investments - long hailed as part of a decentralized marketplace - hinges on the management choices of individual founders.

June 13: Covid Is Making Flu And Other Common Viruses Act In Unfamiliar Ways

At one point last month, children were admitted to Yale-New Haven Children's Hospital with a startling range of seven respiratory viruses. More than two years into the coronavirus pandemic, familiar viruses are acting in unfamiliar ways.

The flu, which seemed to be making a comeback in December after being a no-show the year before, disappeared again in January once the omicron variant of the coronavirus took hold.

Mina said the shift in seasonality is explained largely by our lack of recent exposure to common viruses, making us vulnerable to their return.

For years, Theresa Barton, head of pediatric infectious diseases at University Health in San Antonio, has routinely championed the flu vaccine each fall and relaxed her advocacy by March and April, when the flu fizzled out. Even common colds seem a little more virulent and tenacious, according to Richard Martinello, a specialist in respiratory viruses at Yale School of Medicine.

Ellen Foxman, an immunobiologist at the Yale School of Medicine, has spent years exploring how viruses interact and which genetic and environmental factors mean the same virus may cause a cold in one person and make another very sick.

June 8: No, you’re not imagining it — package sizes are shrinking

From toilet paper to yogurt and coffee to corn chips, manufacturers are quietly shrinking package sizes without lowering prices. Global consumer price inflation was up an estimated 7% in May, a pace that will likely continue through September, according to S&P Global.

Dworsky said shrinkflation appeals to manufacturers because they know customers will notice price increases but won't keep track of net weights or small details, like the number of sheets on a roll of toilet paper.

Procter & Gamble Co. didn't respond when asked about the Pantene Pro-V Curl Perfection conditioner, which downsized from 12 fluid ounces to 10.4 fluid ounces but still costs $3.99.Earth's Best Organic Sunny Day Snack Bars went from eight bars per box to seven, but the price listed at multiple stores remains $3.69.

Domino's Pizza announced in January it was shrinking the size of its 10-piece chicken wings to eight pieces for the same $7.99 carryout price.