{"id":167168,"date":"2022-11-21T14:17:15","date_gmt":"2022-11-21T14:17:15","guid":{"rendered":"https:\/\/precoinnews.com\/?p=167168"},"modified":"2022-11-21T14:17:15","modified_gmt":"2022-11-21T14:17:15","slug":"railroad-strike-will-drive-america-into-disastrous-inflation","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/markets\/railroad-strike-will-drive-america-into-disastrous-inflation\/","title":{"rendered":"Railroad Strike Will Drive America Into Disastrous Inflation"},"content":{"rendered":"
For some reason, the management of America\u2019s railroads, aided by the federal government, cannot lock down a deal with the unions to keep railroads running. Money is not a major concern; these railroads mint money. If there is a strike, America\u2019s supply-chain problem, which already contributes to red-hot inflation, will get even worse.<\/span><\/p>\n Railroad companies had to negotiate with 12 unions; seven have accepted deals. The rank and file at three unions voted against the agreements hammered out by their leadership. Two unions, the SMART Transportation Division and the Brotherhood of Locomotive Engineers and Trainmen, never cut deals.\u00a0<\/span><\/p>\n How serious is the problem?<\/span> According to<\/span> The Wall Street Journal, \u201cUnion Pacific Corp. and CSX Corp. and other freight railroads move about 40% of U.S. long-distance cargo and serve the agricultural, energy and manufacturing sectors.\u201d<\/span><\/p>\n <\/span><\/p>\n Inflation has eased some in the last month, which has caused optimism that the worst of rising prices is behind the country. The BLS Consumer Price Index was up 7.7% last month year over year. While this is very high, it is better than most months since the start of the year. Some economists reasoned that a series of steep rate hikes by the Federal Reserve had done their job in bringing inflation down.<\/span><\/p>\n The Fed may be able to control interest rates, but it cannot negotiate with unions.\u00a0<\/span><\/p>\n \t\t\t<\/p>\n \t\t\t\t