January 1, Producer Prices Hold Steady Defying Tariff Concerns

Hey there, folks! I’ve got some good news about our economy. You know, a lot of people have been saying that President Trump’s tariffs will hurt us, but guess what? Last month, the producer price index, which is how we track wholesale costs in America, didn’t go up at all! Economists thought it would rise by at least 0.2%, but they were wrong. This means President Trump’s tariffs aren’t doing much harm to our economy after all.

Vice President JD Vance had something to say about this, too. He wrote, “It’s almost like the folks predicting doom don’t really get how tariffs work.” He’s got a point!

Now, let’s look at some other numbers. Year-over-year, the PPI went up by 2.3% in June, which is less than it increased in May. It’s the lowest it’s been since September 2024, which means things are calming down. When we take out food and energy, the core PPI also showed the smallest gain since last year.

Earlier, we learned inflation went up a tiny bit more than expected, but overall it’s still on the right track, according to the White House. Our Press Secretary, Karoline Leavitt, mentioned that inflation has been steady since President Trump started his term, showing that predictions about prices going up because of tariffs weren’t right.

These reports come just before more tariffs are set to kick in on August 1. President Trump is also using the inflation numbers to urge the Federal Reserve to cut interest rates. He thinks that if the Fed lowers rates, it could save us a lot of money. The Fed is having a meeting soon, and there are talks that Fed Chair Jerome Powell might step down.

President Trump expressed his thoughts, saying we should lower interest rates by 3 points since inflation is low, and it could save our country a trillion dollars a year! Sounds like a smart plan, doesn’t it?

Wyatt Matters!

The recent economic reports have brought some positive news. Despite concerns about tariffs causing harm, the producer price index didn’t increase last month. Economists predicted it would go up by 0.2%, but they were wrong. This shows that the tariffs aren’t negatively affecting our economy like some feared. Vice President JD Vance even said that the doomsayers don’t understand how tariffs really work, and he might be onto something.

Looking at other numbers, the year-over-year increase in the PPI was 2.3% in June, which is lower than in May. This is the smallest increase since September 2024, indicating that things are settling down. The core PPI, which doesn’t include food and energy, also rose less than expected. While inflation did tick up slightly more than predicted, it’s still under control. The White House shared that inflation has been stable since President Trump took office. Predictions about prices soaring because of tariffs haven’t panned out as some experts claimed.

As we approach August 1, when more tariffs are scheduled to begin, President Trump is urging the Federal Reserve to cut interest rates based on these inflation figures. He believes that lowering interest rates could save our country a significant amount of money. There’s even talk that the Fed Chair might step down, adding to the anticipation. President Trump suggests a rate cut by 3 points could save a trillion dollars a year, which sounds like a wise strategy to help our economy.

As our loyal readers, we encourage you to share your thoughts and opinions on this issue. Let your voice be heard and join the discussion below.

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