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Their message is simple: The Federal Reserve has no excuse left. The numbers speak for themselves. It’s time to slash interest rates and give American families and businesses a break.
The core CPI — which excludes volatile food and energy prices — also delivered a blow to pessimistic forecasts. It came in at just 0.1% for the month and 2.8% annually, compared to CNBC’s projections of 0.3% and 2.9%, respectively. That’s more proof that inflation isn’t spiraling out of control as Democrats love to claim.
Gas prices, a frequent target of criticism during Biden’s tenure, are holding steady around $3.10 a gallon. But the trend is downward — energy prices dropped 1% in May alone. Gas is down 12% since January, with a 2.6% dip just in the past month.
Meanwhile, other sectors supposedly vulnerable to Trump’s tariffs — like vehicles, clothing, and retail — saw price declines. New vehicle prices dropped 0.3%, used cars fell 0.5%, and the overall price of apparel fell. So much for the theory that tariffs would lead to sky-high consumer costs.
Even Seema Shah, chief global strategist at Principal Asset Management, had to concede that things are looking better than expected, though she hedged her bets:
“Today’s below forecast inflation print is reassuring – but only to an extent… it is far too premature to assume that the price shock will not materialize.”
In other words, they’re still hoping for bad news — but reality keeps disappointing them.
Food prices ticked up 0.3%, largely driven by increases in grocery staples, though egg prices dropped 2.7%. Year-over-year, food costs are still elevated but moving in the right direction. Shelter costs rose 3.9%, marking the smallest increase in nearly four years. While still high, this deceleration is a positive signal for families trying to keep a roof over their heads.
The Biden administration and leftist pundits screeched when Trump implemented sweeping tariffs two months ago, calling it “economic suicide” and “trade war madness.” But the evidence now suggests otherwise.
Trump’s America-first trade policy has rattled foreign markets and shaken up international negotiations — with results. The White House just announced that the U.S. and China are moving toward a new agreement that will give American companies access to rare minerals essential for electric vehicles, smartphones, and high-tech manufacturing.
This breakthrough comes only weeks after Trump’s so-called “Liberation Day,” when his administration imposed tariffs across the board to rebalance the playing field. Now, deals are materializing that benefit American industry — without collapsing the economy, as critics predicted.
Wall Street got the message loud and clear. As soon as the CPI numbers dropped, stocks turned upward and Treasury yields slid. The markets know what this means: economic resilience, falling inflation, and strong momentum heading into the second half of 2025.
President Trump’s critics claimed his economic policies would send the country into a tailspin. Instead, inflation is cooling, markets are stabilizing, and America is getting better deals abroad.
Once again, Trump delivers — and the numbers prove it.
