Whistler Edward Snowden expressed dismay at reports of individuals paying $3,000 a month for cars. Snowden recalled purchasing his last car for a total of $3,000, questioning the current state of the used car market and the impact of inflation.
What happened: Reacted to a post on Tuesday highlighting the exorbitant cost of car payments, equivalent to a mortgage for two vehicles. Snowden later clarified that the original figure was for two cars, which still seemed excessive to him at $1,500 per car per month.
“I see tweets saying people are paying $3,000 a month for a car now, which I have a hard time understanding. Do used cars no longer exist? I know inflation is bad, but $3k is the *total* I paid for my last car in the US (maybe 12 years ago?). It also had all four wheels,” she wrote.
See also: US manufacturing activity posts highest growth in 18 months: ‘Clear signs of improving conditions’
Because matter: Inflation has been a hot topic, with the headline annual inflation rate rising to 2.5% in February, as reported by personal consumption expenditures (PCE). This increase from January’s 2.4% reflects an increase in personal spending, which was unexpected. Analysts have been assessing the persistence of sticky inflation and its implications for the economy.
With inflation rising, potential interest rate adjustments by the Federal Reserve are in focus. An upward revision to January’s core price index suggests that an interest rate cut in May may be less likely. The situation highlights the challenges facing consumers, including the rising costs of essential goods such as transportation. February inflation data highlights broader economic pressures that could contribute to the high costs that Snowden questions.
Read next: Fed could cut rates more aggressively amid labor market concerns, expert says: ‘Our focus now is that rate cuts are what you need’
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