The Bacon, Egg & Cheese w/ Coffee index is now at $2.99, with bacon at $1.05 leading the cost, followed by eggs at $0.75 and coffee at $0.40. Inflation still sizzles in our morning favorites!
ECAN US BEC
— Michael McDonough (@M_McDonough) June 11, 2025
As for the core basis, which conveniently ignores those pesky volatile prices for food and energy, it’s holding steady at April’s 2.8%. Ain’t that just peachy?
Trump-Powell standoff and tariffs
Now, let’s talk about the grand spectacle of the Trump-Powell standoff. Tariffs, those delightful little taxes, were deployed and then frozen for 90 days by none other than Donald Trump, who seems to think he’s the maestro of this economic orchestra. Yet, inflation turned out to be as mild as a summer breeze. Chair Jerome Powell and his merry band at the Federal Reserve have been saying they’re in no rush to cut rates, preferring to watch the show unfold before making any hasty decisions. 🎭
Trump, bless his heart, is publicly pressuring Powell, tossing around names like confetti and pointing to the recent European Central Bank rate cuts as proof of Powell’s supposed blunders. His supporters on social media are convinced that Trump will fire Powell, but let’s be real—ain’t nobody firing the Fed chair. The Fed is as independent as a cat on a hot tin roof, and the President’s power here is about as useful as a screen door on a submarine. 🚢
Scott Bessent, the Treasury head, is being whispered about as a possible successor to Powell, but he’s already stated that the low inflation is “due to Trump.” Well, isn’t that a twist? The Fed’s job is to keep inflation and unemployment in check, but they’ve got about as much leverage as a one-legged man in a butt-kicking contest. They can cut or raise interest rates or print money, but that’s about it.
After the COVID-19-induced inflation spike, the Fed is working harder than a one-armed paper hanger to bring inflation back to its pre-COVID level of 2% or below. And by golly, they’ve done a decent job, raising interest rates in 2023 and bringing inflation down from over 7% to a respectable 2.3% in April 2025. 🎉
Trump keeps insisting that decreasing inflation is a splendid reason to cut interest rates, claiming it would weaken the USD and encourage foreign countries to buy U.S. goods, even with tariffs looming like a dark cloud. But from the Fed’s perspective, inflation is still above their target, and tariffs make them as cautious as a cat in a room full of rocking chairs. They don’t want to undo all the progress made in the last five years, after all.
It’s particularly amusing that folks are calling for interest cuts now, when inflation is up, not down. That’s like asking a fish to climb a tree! If the Fed were to cut rates now, it would be as inconsistent as a politician’s promises. So, rate cuts are about as likely as finding a needle in a haystack. And some believe those tariffs will eventually lead to a spike in inflation. Oh, the irony! 😅
Inflation is showing a significant improvement due to the risk of recession.
The only thing that has kept consumer demand high is the expectation of higher prices due to tariffs.
People are buying goods in advance.
Once the tariffs hit imported goods in August, prices will…
— Simplified Engineer (@inqtelx) June 11, 2025
Meaning for the crypto market
Now, let’s turn our gaze to the wild world of crypto. Bitcoin has taken on the role of a hedge against inflation, strutting around like a peacock. But this time, the CPI signal is as clear as mud. Some folks are wringing their hands over the inflation spike, fearing stronger spikes as tariffs take effect, while others are throwing confetti over the “low” or even “no” inflation, since it turned out to be below expectations. 🎊
With such a lack of unity in reactions and the overall uncertainty, the new CPI data will likely have about as much impact on the crypto market as a feather on a boulder. However, if the Fed decides to start printing money, even though it’s still early to cut rates, you can bet your bottom dollar that investors will flock to Bitcoin and gold like moths to a flame. 🔥
The money-printer-goes-brrr situation is not out of the realm of possibility. In April 2025, Fed official Neel Kashkari admitted that the agency has the tools to impact the economy, and many folks took that to mean they might just start printing more fiat money. Well, isn’t that a delightful thought?
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2025-06-12 16:03