Posted on 05/31/2025 11:14:25 AM PDT by E. Pluribus Unum
Self-interested Wall Street analysts and leftist economic ‘experts’ once again proven wrong. It is almost impossible to find any financial data review written objectively by media. Everything is skewed with a negative tone, yet the data clearly shows -just like 2017- President Trump’s MAGAnomic policy benefits are starting to surface.
News pundits said President Trump’s tariff policies would skyrocket prices. In reality the yearly inflation rate [BLS data] has dropped to 2.1%, the lowest in four years. Core prices (removing food and energy) rose 2.5% from a year earlier, below the March figure of 2.7%, and the lowest in more than four years.
Meanwhile personal incomes tripled expectations coming in at 0.8% for the month of April. “Personal income surged 0.8% well ahead of the forecast for 0.3%.” Then comes the predictable. The trade deficit dropped by 46% in the month of April.
[…] The goods trade gap contracted 46.0% to $87.6 billion last month, the Commerce Department’s Census Bureau said on Friday. Goods imports decreased $68.4 billion to $276.1 billion. Exports of goods increased $6.3 billion to $188.5 billion. (source)
Companies front-loaded their orders from China in February and March, causing imports to skyrocket and a massive skew in the GDP data. As expected in April there are fewer orders because the goods were already received in the first quarter, imports drop in half.
Despite increased tariffs we are likely to see a replay of pricing parity similar to 2017 as companies benefit from lowered energy prices, lower fuel costs, lower Transporation and lower warehousing costs. Simultaneously, export companies who rely on access to the U.S. market will attempt to offset any tariff price as applied. Those combined savings can, likely will, offset increased tariffs on arriving goods.
Consumers benefit from lower gasoline costs, lower overall electricity costs and increased demand for labor within a growing economy that puts natural upward pressure on wages.
SUMMARY of Friday: Personal income jumped 0.8% this month, tripling expectations. The US trade deficit has been cut almost in half, the largest single-month narrowing of the deficit on record. U.S. core inflation falls to the lowest level in 4 years. The Supreme Court gives President Trump the green light to reverse Biden’s immigration influx of Venezuelans/Cubans/Haitians/Nicaraguans. And Volkswagen announced they are making a “massive” investment in the U.S to avoid tariffs.
(NY POST) – Volkswagen is holding “fair” and “constructive” talks with the United States government on tariffs and wants to make further investments in the country, CEO Oliver Blume told German newspaper Sueddeutsche Zeitung.
Several foreign companies have announced new US investments in response to President Donald Trump’s import tariffs, but German carmakers have been more cautious about committing more resources to what is their biggest export market.
Volkswagen’s Audi brand, which has no production in the United States, is planning to produce some models in there, although the brand has said that the plan pre-dates the Trump administration. (link)
Oh! Golly! Gosh! Trump is screwing up everything! [/s] My Liberal friends will tell you all about it!
Meanwhile, Powell sits on his thumbs and whines that Twumpy Bear is causing “uncertainty”.
The target inflation rate has been met. So uh...howse about a few basis points off the fed rate?
Oh sorry...can’t do dat. No one be buyin’ da bonds...
The rap changes to fit the plan.
Problem is not inflation. Problem is fugly big national debt requiring Trillion dollars plus every year paying out in interest. Feds need to sell bonds to pay cash for maturing bonds. And the cost of servicing nation debt is causing more budget deficits and higher national debt. If interest rates were reduced, less bond buyers.
Balance the budget and interest rates will come down.
Consumer sentiment has also risen. And for the first time in 29 years, a majority of Americans say the country is “on the right track”.
"The Press" lies because they're vile AND stupid. Rick Santelli - a founding father of the future - told the truth on air the other day - he might have been the only person who did... who also understands the situation.
Furthermore, an appeals court has temporarily blocked the Trade Court’s injunction on Trump’s tariffs, IIRC. Hopefully, many agreements can be made for actual FREE AND FAIR trade between us and other countries, so the ultimate tariff rate — I believe Trump will want some level permanently — won’t be so high.
Maybe Powell can direct that toward CONgress, since CONgress passed the Big, Beautiful Brobdingnag, which has a $2.2T deficit.
F the government. Both sides.
Correct! But CONgress not only didn’t cut a single penny from the deficit, they INCREASED it to $2.2T, the little sh!ts.
I forget, what was your previous screename?
Doesn’t matter. Recall I made fun of your argument in the latter part of the post.
The Reserve “bank” has been consistently saying that their target rate of inflation is 2% for something like 30 years. That’s been Powell’s excuse whenever Trump is in office.
They use the Argument Du Jour to maintain whatever rate will do maximum damage to Trump. Inflation up? That’s the problem. Spending up? Trump’s fault.
That’s all that’s going on.
MSM can do their magic now…..
Inflation dropped , why thats not always a good thing
Personal income tripled but not why you think it did
US trade deficit cut by 46% , why US ports are now struggling
“Rick Santelli - a founding father of the future - told the truth on air the other day”
I’m surprised his overlords at CNBC allow him to tell the truth at times.
I blame Trump for proposing a bill which
Increase national debt by Trillions of dollars. Good to see there are still some fiscal conservatives remaining in Congress who are trying to CUT Spending.
Ooops, did TRUMP do that?
You are correct. They all are addicted to spending OPM. Other People’s Money.
Trump comes from a builders background. What do builders love to do? Borrow money at low interest rates. There is very small cutting in the BBB.
Rick Santelli’s a brave man...
Gas down to $2.41 here in Georgia east of Atlanta now. Love this winning!
Sure, inflation is at 2.1%.
Watched the local news and boy are they trying to spin all this in a negative light. But but but TARRIFFS!
“”Good to see there are still some fiscal conservatives remaining in Congress who are trying to CUT Spending.””
Hey Bobby, where have all your conservatives in Congress been for the past 50 plus years?
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