'It will get worse': Analysts fear new financial report is a bad sign in Trump's economy
U.S. President Donald Trump speaks in the Oval Office of the White House in Washington, D.C., U.S., February 11, 2025. REUTERS/Kevin Lamarque
March 28, 2025
The Bureau of Economic Analysis released its February report about consumer behavior on Friday, which shows increases in prices on most things charted.
Personal Consumption Expenditures (PCE) data charged by the Bureau "is known for capturing inflation (or deflation) across a wide range of consumer expenses and reflecting changes in consumer behavior," the site explains.
The changes in monthly consumer spending in February showed increases in nearly every category. The only three indicators that were reduced were spending on nonprofits; food services and accommodations; and gasoline and other energy goods.
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Some analysts are concerned that it might forecast a change in inflation, which had been improving.
“It shows some preliminary signs of stagflationary pressures. This reinforces the narrative that growth may be becoming a little bit more sluggish even as inflation is starting to show some signs of perking up before we really get the brunt of the trade disruptions," Gennadiy Goldberg, head of U.S. rates strategy at TD Securities, told the New York Times.
Macro economist Deward Bowles noted, "Inflation rising, stock markets crashing, job market weakening, foreign visitors and investments evaporating, the Putin stooge Trump and the Russian puppets, the Republicans are traitors to America."
"The good news in this inflation report is that DOGE has not yet crippled the integrity of America's economic data, so the fact that inflation remains above target and moved in the wrong direction in February is visible for all to see," said Bloomberg columnist Matthew Yglesias in an X post.
Conservative Daniel Horowitz from The Blaze posted, "Every other economic report contradicts itself but the sum total is that the trajectory of the high cost of living continues and is even increasing. People wrongly declared inflation dead from one report, but today's PCE of course shows its folly. The GOP response is to spend even more."
"Core PCE inflation came in a little above the already high expectations in Feb. The pattern is the opposite of what you want to see--the shorter the window the higher the annualized rate (and still high at 12 months): 1 month: 4.5% 3 months: 3.6% 6 months: 3.1% 12 months: 2.8%," said Jason Furman, a Harvard professor and former chair of the Council of Economic Advisors for President Barack Obama.
Washington Post economic columnist Heather Long said, "Inflation progress stalled in February. PCE inflation rose 0.3% in February and 2.5% in the past 12 months. That's the same as January. 'Core PCE' (excluding food & energy) rose 0.4% in February and 2.8% in the past 12 months. That's a tad hotter than expected and up from 2.6% the prior month. Bottom line: Inflation remains a problem and President Trump's tariffs are going to exacerbate it."
Journalist Paul Brandus, who authors the West Wing Report, chimed in, "Inflation rose more in February than expected, data out moments ago says (PCE price index); many economists think it will get worse as Trump/Vance tariffs kick in."