Well, howdy there, internet people, it's fell again. So today, we're going to talk about

Trump, PPI surge, and what it means. Okay, so the big economic news yesterday was that PPI

surged by a ridiculous amount, and headlines called it surprising or a shock. No, it wasn't a surprise

or a shock generally. This is the first step in Trump's tariff inflation really starting to come

home. Remember, economic headlines are written for investors. The markets run on estimates.

It was surprising because it was higher than the estimates. It wasn't surprising that Trump's tariffs sent prices up. Regardless of

Trump's statements, a terrorist's whole job is to raise prices. Okay, so what is the PPI and what does it going up by the biggest jump in years mean? The PPI is the producer price index. When we talk about inflation, we generally talk about the CPI, the consumer price index. The producer price index is basically the wholesale or producer

inflation gauge. The expectation was for wholesale inflation to go up 0.2%. It went up 0.9%. That's a huge

miss from expectations and a huge jump. This missed estimate comes just after

consumer inflation didn't go up as much as expected. Two missed inflation estimates. When we talked

about this before, we talked about how the estimates being right is important to investors

because it tells them they understand what's happening with the economy.

Okay. So what does PPI going up mean to you?

PPI going up means that companies are not eating the tariffs.

Shocked. I'm shocked. Well, not that shocked.

Basically, all of the inventory companies preloaded before the terrace has run out. So now companies are passing the costs on. Eventually, those costs will be passed on to you. PPI is a leading indicator of the

normal type of inflation you worry about. Oxford economics analysts released a research note,

saying, quote, tariff-exposed goods are rising at a rapid clip, indicating that the willingness and ability

of businesses to absorb tariff costs may be waning. Aside from increased prices for you,

the PPI increasing means that the Federal Reserve's approach on interest rates was correct.

Again, shocked. The world-renowned economists knew better than Trump. But Trump's policies have put the Fed in a tough

spot. With jobs numbers so bad that Trump fired the calculator and is talking about no longer

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