Federal Reserve officials debated whether tariff-driven inflation in the months ahead will be a one-time event or an ongoing problem, according to minutes of their last policy meeting released Wednesday afternoon.
"We'll give them a certain period of time to get their act together," Trump said, apparently referring to drugmakers.
-- CNBC (@cnbc.com) Jul 8, 2025 at 4:00 PM
[image or embed]
@#2
Apparently, neither has the Fed.
From the article ...
... Federal Reserve officials debated whether tariff-driven inflation in the months ahead will be a one-time event or an ongoing problem ...
Minutes of the Federal Open Market Committee, June 17-18, 2025
www.federalreserve.gov
@#9 ... Thus far under Trump policies, inflation is running 1.6% annualized.
You misspelled 3.05%. ...
Current US Inflation Rates: 2000-2025
www.usinflationcalculator.com
... The annual inflation rate for the United States was 2.4% for the 12 months ending May, compared to the previous rate increase of 2.3%, according to U.S. Labor Department data published on June 11, 2025. The next inflation update is scheduled for release on July 15 at 8:30 a.m. ET, providing information on the inflation rate for the 12 months ending June. ...
Table: Annual Inflation Rates
...
2025
Jan: 3.0
Feb: 2.8
Mar: 2.4
Apr 2.3
May: 2.4
Jun: available July 15
...
"You misspelled 3.05%.
#8 | Posted by jpw"
I will explain 1 time and 1 time only for you stupid -------- so pay attention.
What you are quoting is a Year-Over-Year change. The latest data is for May 2025 - the June data will not come out until July 15th.
So, when you use the number of 3.05% (which is the FORECAST), it is estimating the projected change in prices from July 2024 to July 2025. That includes the ridiculously high inflation under Biden for July 2025-Jan 2025 AND a FED forecast for which they have been repeated WRONG for June and July. THAT WAS NOT UNDER TRUMP AND DOES NOT REFLECT INFLATION TODAY.
To get what the rate of change is TODAY (or under Trump), we can take the data for most recent period and annualize it - in this case, we would use the data for the most recent Quarter: Mar'25, Apr'25, and May'25. Once the data for June is released, we can use April - June.
So how is inflation actual calculated? You take the indexed basket of goods as collected by the BLS monthly and reported as the CPI-U (www.bls.gov) - this is stated as THE MONTH-OVER-MONTH change but it also posted for the BASKET (UNIT) Value itself. So, let's take the CORE inflation (listed in the chart as "All items less food and energy":
Month Over Month Change from the BLS (www.bls.gov)
March: +0.1%
April: +0.2%
May: +0.1%
For the sake of math, let's take these percentages index to Feb 2025 (which is given an index of 100).
The series would then be:
Feb: 100
Mar: 100.1
Apr: 100.3002
May: 100.400502
Rate of Quarterly inflation = 100.400502/100 = 1.004005002 = 0.400502%
We annualize the quarterly rate = 1.00400502^4 = 1.016116505 = 1.6% - AS I HAVE REPEATEDLY (AND CORRECTLY) STATED.
Now, did the Fed predict this to be 1.6%? NO. They kept assuming we would see inflation - WHICH DID NOT APPEAR.
Is China Engaging in Large-Scale Dumping of US Treasury Securities? (April 2025)
internationalbanker.com
... When reviewing China's recent actions regarding its net US bondholdings"a period that has seen the country sell substantially more US Treasuries than it has bought"one might be inclined to suggest that Beijing could be behind this latest bond-market rout.
During December, for instance, official US government figures showed that Mainland China, along with the two other leading national holders of US Treasury securities (Japan and the United Kingdom), dumped more than $80 billion of US government debt in total. Japan, the biggest holder, shed some $25.6 billion of US Treasuries during December to leave its total holdings at the time at $1.0615 trillion, while $9.6 billion and a hefty $44.1 billion were sold by China and the UK, respectively, to leave their holdings at $759.0 billion and $722.7 billion.
Although evidence through February of this year showed that the three nations had somewhat replenished their US Treasury security holdings since December, the bond market's pronounced volatility in early April has generated its fair share of allegations against China that it is engaging in large-scale bond dumping once more. ...
@#27 ... Yes - and this is probably a new concept for your smooth brain ...
Still, with the ad hominem comment.
That aside ...
... NOT ALL SPENDING IS THE SAME ...
Yeah, in #26 I was mentioning the increase of the deficit, and how that may affect interest rates. Nice attempt at a deflection.
... It would if rates were actually set by supply & demand - which they aren't. ...
For US bonds and, subsequently, the cost of US borrowing, yeah they do appear to be set by supply and demand.
That's likely one of the reasons why Pres Trump reacted so quickly to the bond market.
Why did Trump pause the tariffs? The bond market rebelled -- here's what that means. (April 2025)
www.cbsnews.com
... Even as stocks plunged in reaction to his administration's sweeping tariffs, President Trump expressed confidence in his trade policies, saying last week that "markets are going to boom." But by Wednesday, a collective thumb's down to the tariffs by bond investors had given Mr. Trump pause.
With U.S. and global financial market tumbling, he abruptly suspended his administration's "reciprocal tariffs" on dozens of other countries for 90 days, acknowledging that the bond market was "getting a little queasy."
Mr. Trump's about-face was by no means the first time a sitting American president had blinked in the face of bond investors expressing alarm over U.S. policies they viewed as fiscally reckless and harmful to their portfolios. In their first terms, both Bill Clinton and Barack Obama also found themselves knocked back when the bond market rebelled at the cost of some of their strategic priorities.
The "bond vigilantes" ride again
Americans might think of bonds as a less risky asset class they turn to in their 401(k)s to offset more volatile investments, such as stock. But the $2.8 trillion Treasury market is also a bedrock of the U.S. government. The federal government finances the country's debt by selling Treasury bills to investors, who prize the asset because of the country's sterling credit rating and its guarantee of making good on interest payments.
As the Trump administration's reciprocal tariffs went into effect on Wednesday, the bond prices slid and the yield on 2-year Treasury notes rose by as much as 0.3 percentage points, marking the biggest intraday move since 2009, according to financial data firm FactSet. (Bond prices move in inverse relation to their interest rates, or yields.) ...
Trump says U.S. interest rate is at least 3 points too high
www.reuters.com
... U.S. President Donald Trump on Wednesday called on the Federal Reserve to lower the federal benchmark interest rate by at least 3 percentage points, renewing his call for the U.S. central bank to lower rates to help reduce the cost to service the nation's debt.
"Our Fed Rate is AT LEAST 3 Points too high. "Too Late" is costing the U.S. 360 Billion Dollars a Point, PER YEAR, in refinancing costs. No Inflation, COMPANIES POURING INTO AMERICA. "The hottest Country in the World!" LOWER THE RATE!!!" Trump wrote on Truth Social. ...
Or ... maybe, the huge increase in debt (deficit) enacted by Pres Trump's tax bill is making US Bonds less attractive, so, Pres Trump, in his usual transaction approach, wants to lower interest rate to reduce the cost of carrying those bonds?
Global Investors Have a New Reason to Pull Back From U.S. Debt
www.msn.com
... Foreign investors have plenty of reasons to be wary of U.S. government debt at the moment. Now there is another: They can often receive better returns buying bonds in their own countries.
The risk of a weaker U.S. dollar and the cost of protecting against that risk, are making American assets less attractive around the world. That comes at a bad time for the U.S. Treasury market, which is already contending with a darkening U.S. budget picture and the trade war.
Foreign investors likely don't fear a U.S. default or anything close. But the premium many once received for buying U.S. debt, thanks to higher long-term rates here, has disappeared. ...
@#93 ... Now, if you want to continue, take ownership and admit that what you posted was a either just an innocent mistake and was wrong or an intentional lie. ...
It was neither.
It was a statement of the regular inflation report. Which did show an increase, not the cherry-picked numbers your current alias proffers.
Consumer Price Index
www.bls.gov
...
Latest Numbers
Consumer Price Index (CPI): +0.1% in May 2025
...
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