The difference between the Trump administration and the Biden administration in how the indices are used and reported also is significant in understanding inflation. The Trump Administration uses the Consumer Price Index (CPI) in public communications to determine immediate consumer experiences with inflation. The Biden Administration used Personal Consumption Expenditures Price Index (PCE) and the Core Inflation Measure, to report a watered-down version of what was really happening to consumers. The PCE and Core Inflation Measures lag behind the CPI, so it is not a true indication of the pain consumers are suffering. PCE is updated quarterly. CPI is reported monthly. π
Can you please send this to Sec Treasury Bessent. Your analysis is excellent. The term I hear most often is that tariffs are too confusing or complex. This is the best explanation I've read about why DJT did what he did and why its been successful. Plus, you show where all the left leaning pundants missed the mark, again.
Trump's timing is uncanny - China is in full-on deflation now, and the US Treasury is benefitting because the tariffs are absorbing the wedge between falling prices in China and steady prices here. This wouldn't be happening if prices in China were steady or rising.
This is what happens when theory meets dirt. The experts spoke in absolutes. Trump acted. Inflation didnβt riseβit retreated. Prices didnβt explodeβthey adjusted. Tariffs didnβt βtax Americansβ; they forced exporters, importers, and supply chains to eat costs and adapt. The panic was built on a cartoon model of the economy that ignores substitution, competition, inventory strategy, and power. Trump understood leverage. He used tariffs as pressure, not dogma. The result? Lower inflation, strong growth, shrinking deficits, and a media class caught erasing its own certainty. Once again, the data betrayed the narrativeβand vindicated Trump.
The boss is the best economic analyst ever. Viva TRUMP πΊπΈ. Thanks @amuse for this brilliant piece, LOVE your interpretation.
The difference between the Trump administration and the Biden administration in how the indices are used and reported also is significant in understanding inflation. The Trump Administration uses the Consumer Price Index (CPI) in public communications to determine immediate consumer experiences with inflation. The Biden Administration used Personal Consumption Expenditures Price Index (PCE) and the Core Inflation Measure, to report a watered-down version of what was really happening to consumers. The PCE and Core Inflation Measures lag behind the CPI, so it is not a true indication of the pain consumers are suffering. PCE is updated quarterly. CPI is reported monthly. π
Excellent piece. Let's pray SCOTUS doesn't screw up this powerful tool...
Can you please send this to Sec Treasury Bessent. Your analysis is excellent. The term I hear most often is that tariffs are too confusing or complex. This is the best explanation I've read about why DJT did what he did and why its been successful. Plus, you show where all the left leaning pundants missed the mark, again.
Someone needs to tell Bessett, Trump always wins. πΊπΈ
Trump's timing is uncanny - China is in full-on deflation now, and the US Treasury is benefitting because the tariffs are absorbing the wedge between falling prices in China and steady prices here. This wouldn't be happening if prices in China were steady or rising.
This is what happens when theory meets dirt. The experts spoke in absolutes. Trump acted. Inflation didnβt riseβit retreated. Prices didnβt explodeβthey adjusted. Tariffs didnβt βtax Americansβ; they forced exporters, importers, and supply chains to eat costs and adapt. The panic was built on a cartoon model of the economy that ignores substitution, competition, inventory strategy, and power. Trump understood leverage. He used tariffs as pressure, not dogma. The result? Lower inflation, strong growth, shrinking deficits, and a media class caught erasing its own certainty. Once again, the data betrayed the narrativeβand vindicated Trump.
Excellent write up
Again, hats off to you for cohesive explanation.
Excellent summary. Iβll take PDJTβs advice over the so-called experts on any subject that might help our nation.