The “Big Money Show” panel will discuss whether Trump's tariffs will cause more inflation.
Just a month at work President Donald Trump It has already overseen dramatic economic improvements, cutting monthly inflation by half. In any case, inflation improved significantly in February, and the Trump administration is positioned perfectly to not only slow inflation further, but ultimately lower prices.
In February, the Trump administration's first month, the Consumer Price Index (CPI) rose just 0.2% from January. This is less than half of the price, which rose 0.5% from December to January. Biden administration.
What makes inflation slower in February is that seven months of inflation preceded by refueling. Simply put, Biden handed Trump the inflationary disruption that was getting worse. At least until Trump begins to reverse Biden's radical agenda.
Inflation will be eased in February, but Trump's tariffs could derail progress
And it was a reversal! Instead of strangled trustworthy American energy production, the new mantra is “drills, baby drills.” Trump has pledged to cut bureaucratic deficits in place of additional burdensome regulations. As long as you can see, instead of the never-ending multi-trillion dollar deficit, Trump wants to balance his budget.
Former Federal Reserve Governor Kevin Wahsh discusses inflation, tariff impacts and deregulation on “Maria Bartiromo's Wall Street.”
Whether that's true or not tax rateinternational trade, or vain government spending, the Trump administration is doing the exact opposite of its predecessors, and the result is from heaven for Americans who have been destroyed by inflation.
In February, annual inflation measured by CPI fell, but the “Core” CPI, an index that excludes volatile food and energy categories, also declined. In fact, the annual core inflation rate has fallen to its lowest level since April 2021.
Core inflation is a way to remove outliers and is therefore viewed closely. If food or energy prices change temporarily and rapidly, like when egg prices start to fall, core inflation can give you a better sense of how inflation is trending over the long term.
Inflation slowed slightly in February, slowing to 2.8% ahead of the Federal Reserve meeting
Fortunately, other ways to remove outliers from inflation metrics also showed significant improvements in February. One such statistics, the median CPI, has dropped to its lowest level since October 2021. Another of these statistics, the trimmed average CPI, has dropped to its lowest level since July 2021.
Sen. John Kennedy (R-La.) said he will advance the size of the federal government, potential “debt bombs” and Republican fundraising bills.
These declines are important as they indicate a very widespread slowdown in inflation. Not only one or two items in the CPI are slowing down price growth or price drops. Instead, most components of CPI slowed price growth in February.
Better yet, price increases are not only slower, they're also completely reduced. It's happening with eggs, gasoline and airfares. Things are clearly heading in the right direction.
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That being said, momentum is a very powerful force in physics and economics. The Trump administration is trying to change direction after virtually not stopping freight trains. That takes time, not only Hercules' efforts.
Similarly, Biden was handed a very low annual inflation rate of just 1.4% and literally began implementing the inflation policy on the first day, but 18 months later, the annual inflation rate peaked at a four-year high.
By that point, prices had risen in a month as quickly as before Biden took office. However, that dramatic increase takes time and it takes time to kill inflation completely.
February is a great first step, and if the Trump team continues it, they will get the rest of the way to price stability.
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As Treasury Secretary Scott Bescent explains, this effort is a government-wide approach. To beat inflation will include the Treasury Department, which is working on tax cuts, the Energy Department, which is working on oil, gas and coal production, the Commerce Department, which is working on international trade, and almost all sectors working on regulatory reform.
Treasury Secretary Scott Bescent is discussing the US economy, tariffs and inflation at the New York Economic Club. (Credit: ecny)
All the hands of the Trump administration can help the economy grow while lowering prices. It's the first innings, but they're heading for an early lead.
Ej Antoni, a fiscal economist, is a Richard F. Astor Fellow of the Heritage Foundation and a Senior Fellow of Unleash Prosperity.
