The panel of “The Big Money Show” discusses if the Trump prices will cause more inflation.
Just a month at work, President Donald Trump has already supervised a spectacular improvement in the economy, the monthly inflation rate being half reduced. In any case, inflation improved significant in February and the Trump administration is perfectly positioned to not only slow down inflation, but ultimately lower prices.
For the month of February, the first month of the Trump administration, the consumer price index (IPC) increased only by 0.2% compared to January. It was less than half of the price increase from 0.5% from December to January, the last month of the Biden administration.
What makes the slowdown in February inflation more dramatic is that it was preceded by seven months of rejoice of inflation. In simple terms, Biden gave Trump an inflation mess that would encroach, no better – at least, not before Trump started to reverse the Radical Biden agenda.
Inflation is softened in February, but Trump prices could derail the progress
And what a reversal it was! Instead of strangling reliable American energy production, the new mantra is “Drill, Baby Drill”. Instead of additional binding regulations, Trump undertakes to cut bureaucratic administrative formalities. Instead of endlessness and billions of dollars that the eye can see, Trump wants to balance the budget.
Former governor of the Federal Reserve Kevin Warsh discusses inflation, the impact of prices and deregulation on “Maria Bartiromo’s Wall Street”.
Whether tax rateTrade international, or DOGE and public waste, the Trump administration is exactly the opposite of its predecessor, and the results are paradise for an American people who have been ravaged by inflation.
In February, the annual inflation rate measured by the IPC dropped, but the “basic” ICC, a index that excludes the volatile categories of food and energy. In fact, the annual rate of central inflation has dropped to its lowest level since April 2021.
Central inflation is closely monitored because it is a way to eliminate aberrant values. If food or energy prices temporarily change quickly, as when egg prices have increased, then started to decrease, central inflation can give a better idea of ​​how inflation tends in the long term.
Inflation slowly slowed down 2.8% in February before the federal reserve meeting
Fortunately, other methods of eliminating the aberrant values ​​of inflation measures have also shown significant improvement in February. One of these statistics, the median IPC, fell to its lowest level since October 2021. Another of these statistics, the IPC with a full medium, fell to the lowest level since July 2021.
Senator John Kennedy, R-La., Talks about the size of the federal government, a potential “debt bomb” and a bill for the financing of the Republicans.
These drops are important because they show that the slowdown in inflation is very widespread. It is not as if one or two items within the IPC notes a slower price growth or price reductions. Instead, the vast majority of IPC components experienced slower prices growth in February.
Even better, an increasing number of prices increases not only slower, but downright down. This occurs with eggs, petrol and air rates. Things are clearly directed in the right direction.
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That being said, Momentum is an incredibly powerful force in physics and economics. THE Trump administration Effectively try to stop a freight train, then have it changed direction. It will not only take a Herculean effort, but also time.
Similarly, Biden received a very low annual inflation rate of only 1.4% and, although it began to implement inflationary policies on the first day, it was only 18 months later that Annual inflation rate culminating in peaks of four decades.
At this stage, prices increased in a single month as quickly as they did all year round before Biden took office. This spectacular increase, however, has taken time and it will take time to completely kill inflation.
February was an excellent first step and if the Trump team the rest, it will get America the rest of the price for price.
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As Treasury secretary Scott Bessent Describes it, this effort is a total approach to the government. The reduction in inflation implies the Treasury working on tax reductions, the Ministry of Energy working on oil, gas and coal production, the Ministry of Commerce working on international trade and almost all departments working on regulation reform.
Treasury secretary Scott Bessent discusses the American economy, prices and inflation at the Economic Club in New York. (Credit: Ecny)
Everything is hands on the bridge in the Trump administration To develop the economy while reducing prices. This is only the first round, but they reach an early advance.
EJ Antoni, economist of public finances, is Richard F. Aster Fellow at the Heritage Foundation and a senior scholarship holder at UNLEASH Prosperity.
