Month-over-month inflation came in at 0.2% (better than forecasts of +0.3%) in February, for an annual Consumer Price Index of 2.8%, according to the Labor Department. That compares with January’s +0.5% increase and 3% annual CPI, an indication that Trump Tariffs had not taken hold yet last month. Scroll down for details. [CHART: Bureau of Labor Statistics]
In Moscow – White House special envoy Steve Witkoff is in Moscow to negotiate the 30-day ceasefire reached earlier this week with Ukraine, NPR’s Morning Edition reports. Details of the Kremlin’s initial rejection below. …
In Washington – Ontario Premier Doug Ford meets with US Commerce Secretary Howard Lutnick Thursday after Ford agreed to back down on tariffs and potential cutoffs of his province’s sales of hydro-electric power to Minnesota, Michigan and New York State. Read our trade-war counterproposal here.
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‘Nyet’ to 30 Day Ceasefire – Senior Putin aid and Russian negotiator Yuri Ushkov has rejected the peace deal negotiated in Jeddah, Saudi Arabia between the US and Ukraine ahead of special envoy Steve Witkoff’s Kremlin visit, saying it would give Ukraine time to reboot, according to The Wall Street Journal. Russian forces are on the verge of taking back its own Kursk Oblast invaded by Ukrainian forces last summer.
“This is nothing other than a temporary time-out for Ukrainian soldiers, nothing more,” Ushkov said. “Our goal is about peaceful resolution. Steps that imitate peaceful actions are not needed.
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EPA -the-P – The Environmental Protection Agency plans to target more than two-dozen rules and practices in the “most consequential day of deregulation in US history,” NPR’s All Things Considered reported Wednesday. Most rules the EPA is reconsidering involves climate pollution from motor vehicles and power plants, wastewater from coal plants and air pollution from the energy and manufacturing industries.
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DOGEed – After Elon Musk’s Department Of Government Efficiency posted error-filled data of its early successes in weeding out federal government inefficiency and corruption, DOGE is claiming newfound transparency in its reports. DOGE’s website on March 2 claims it cut 3,489 grants worth $10 billion. But a new investigation by The New York Times finds these latest DOGE claims do not have previously disclosed identifying details for cuts for which it takes credit.
Meanwhile … As a trade war rages, Canada is investigating potential privacy violations by Musk’s largely pro-Trump social media platform, X/Twitter following a complaint lodged in February, the Financial Post reports. Canadian privacy minister Phillippe Dufresne has announced an investigation into “whether X is meeting its obligations” to meet the nation’s Personal Information Protection and Electronic Documents Act.
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CPI Details -- The Labor Department reported a 4% month-over-month drop in air fares and a 1% drop in gas prices, offsetting +0.3% for shelter, +0.2% for energy and +0.4% for food away from home. Despite notorious egg price hikes, food at home was unchanged.
--TL
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Inflation Continues to Cool
WEDNESDAY 3/12/25
UPDATE: We Take That Back – The continuing resolution passed by the House Tuesday that would fund the government through September 30 will not get a vote in the Senate this week, as Minority Leader Chuck Schumer (D-NY) will not let seven of his fellow Democrats get the bill to the floor without filibuster, The New York Times reports. Schumer clearly sees reluctance by Republicans to let the government shut down this weekend: He and his fellow Democrats instead back a 30-day stopgap bill forcing the two sides of the aisle to reach a bipartisan solution in the coming month.
Come back, House GOP … House Republicans purposely left Washington after their 217-213 passage of the CR Tuesday.
Not a Shutdown in Sight – Democratic senators are coming around to the idea it would be “too risky” to block the continuing resolution passed by the House, 217-213, Tuesday and force a government shutdown at the end of the week, The Hill reports, even though the bill increases defense spending by $6 billion while cutting non-defense by $13 billion.
“For me, if the Democrats think that they want to burn the village down to save it, that’s terrible optics and that’s going to have serious impacts for millions and millions of people,” Sen. John Fetterman (D-PA) told The Hill. “I’m never going to vote for that kind of chaos.”
While Fetterman has vowed to vote for the CR, he is offset by Sen. Rand Paul (R-KY), a spending hawk/defense libertarian who has vowed to vote against it. Senate Majority Leader John Thune (R-SD) still needs cooperation from seven more Democrats (and all of his party) to pass the bill without a filibuster.
Tuesday’s House vote had one defector from each side of the aisle. Rep. Jared Golden (D-ME) voted for the CR, while Rep. Thomas Massie (R-KY) voted against.
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This Means Trade War! – The European Union imposed 50% tariffs on Kentucky bourbon and Harley-Davidson motorcycles Wednesday as Trump Tariffs™ of 25% on steel and aluminum took hold overnight, The Wall Street Journal reports. The EU tariffs were designed to maximize the political and economic costs for the US of the tariffs, while minimizing harm to European businesses and consumers, according to officials.
Also, maybe good for Scotch whiskey and Beemers.*
The counter-measures are expected to cover about $24.5 billion of US goods.
[*BMW motorcycles, as distinguished from the German brand's autos, known among cognoscenti as “Bimmers.”]
Meanwhile … As Europe braces for President Trump’s reciprocal tariffs April 2, the EU is planning a second tranche of tariffs on US goods by mid-April, including chewing gum, poultry, white chocolate, soybeans, carpets and watermelon, according to the WSJ.
--Compiled and edited by Todd Lassa