CNN Reports Inflation Cooling Amid Trump’s America-First Economic Strategies [WATCH]

The Trump administration is pointing to a cooling inflation rate as further evidence that its economic policies are strengthening the U.S. economy despite ongoing trade negotiations and stock market volatility.

Egg prices are down.

Gas prices are down.

This is exactly what I voted for. pic.twitter.com/Rnp07cS70x

— Libs of TikTok (@libsoftiktok) March 11, 2025

Elon Musk Called This Financial News ‘Terrifying’

The latest inflation data, released by the U.S. Department of Labor, shows that core inflation slowed in February, with consumer prices rising 2.8%—a figure below the 3% benchmark recorded in January.

The monthly increase in consumer prices was just 0.2%, a sign that inflationary pressures may be easing. One CNN analyst described the report as a “step in the right direction.”

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“This is definitely very encouraging to see,” the analyst said Wednesday.

“Because I think it’s going to relieve some fears that inflation will perhaps reaccelerate.”

CNN: “Finally, we have some good news on the economy… both of these figures were a step in the right direction, and BOTH were better than expected… this actually breaks a streak of four straight months where the inflation rate was going in the wrong direction.” pic.twitter.com/aSfyscZAKq

— Rapid Response 47 (@RapidResponse47) March 12, 2025

Since August 2023, inflation rates have fluctuated between 2.2% and 3.9%, significantly lower than the near 9% levels reached in early 2022.

Prices for goods excluding food and energy—the core inflation measure—rose 3.1% year over year, marking the lowest annual increase since 2021, according to The Wall Street Journal.

Despite the improving inflation outlook, investor concerns remain over President Donald Trump’s ongoing trade battles with Canada and Mexico.

While stocks initially rose at the opening bell following the release of the inflation report, markets later pulled back, reflecting uncertainty over trade negotiations.

President Trump’s latest tariff policies have led to rapid developments in U.S.-Canada trade relations.

On Tuesday, Ontario announced it would lift a surcharge on electricity exports to Michigan, New York, and Minnesota just 24 hours after imposing it.

The reversal followed high-level talks between Trump Commerce Secretary Howard Lutnick and Ontario Premier Doug Ford.

One day earlier, Trump had announced a 25% increase in tariffs on Canadian steel and aluminum, bringing the total to 50%.

The move was a direct response to Ontario’s surcharge, with the president threatening to declare a “national emergency on electricity” if the policy remained in place.

.@POTUS announces that Ontario Premier Doug Ford will NOT be charging a surcharge on electricity to the U.S.:

“He has called, and he said he’s not going to do that… it would’ve been a very bad thing if he did, and he’s not going to do that, so I respect that.” pic.twitter.com/dKtLQSHP2H

— Rapid Response 47 (@RapidResponse47) March 11, 2025

Trade officials from the U.S., Mexico, and Canada are set to reconvene Thursday to discuss potential revisions to the United States-Mexico-Canada Agreement (USMCA) ahead of an April 2 tariff deadline.

While the administration views tariffs as a critical tool in reshaping trade policy, some economists remain skeptical about their long-term impact.

Last week, Goldman Sachs economists projected a fourth-quarter core inflation rate of 2.9%, up from 2.4% the year before.

Additionally, investors are doubtful that February’s inflation data will influence the Federal Reserve’s upcoming decision on interest rates.

Futures trading on Wednesday suggested a slight decline in expectations for a rate cut at the central bank’s next meeting.

Despite ongoing trade disputes, President Trump has cited recent business investments as proof that his economic strategy is working.

The possibility of tariffs has pushed major corporations like Apple and OpenAI to expand their investments in American workforce development and artificial intelligence research.

In February, Honda announced it would relocate production of its 2025 Civic models to Indiana, reversing previous plans to manufacture them in Guadalajara, Mexico.

The move aligns with Trump’s broader efforts to bring manufacturing jobs back to the U.S.

As trade negotiations continue and inflation trends downward, the Trump administration is expected to double down on its economic messaging, touting the latest numbers as a sign that its policies are keeping the economy on track.

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