Latest / The 47 Morning Update with Ben Ferguson / BOOM! Inflation's Biggest Drop in Years Shakes the Narrative

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BOOM! Inflation's Biggest Drop in Years Shakes the Narrative · The 47 Morning Update with Ben Ferguson

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  Speaker 1: But we're going to hit them very hard tonight, We're
• 0:03
  Speaker 1: going to hit him very hard. Tomorrow night, we're going
• 0:05
  Speaker 1: to hit him very hard the night after. And then
• 0:08
  Speaker 1: next week it gets really bad for them because next
• 0:11
  Speaker 1: week comes the power plants. Next week comes to the bridges.
• 0:17
  Speaker 1: We're going to knock out all their power plants. We're
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  Speaker 1: going to knock out all their bridges unless they get
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  Speaker 1: to the table and negotiate.
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  Speaker 2: You're listening to the forty seven Morning Update with Ben ferguson.
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  Speaker 3: Good Wednesday morning. Nice to have you with us on
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  Speaker 3: the forty seven Morning Update, and we've got two big
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  Speaker 3: stories for you. First up, the media and the economists. Yeah,
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  Speaker 3: they got it wrong. Inflation numbers are out and it
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  Speaker 3: was a big drop in fact, the biggest drop in
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  Speaker 3: inflation in six years. So where is it now and
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  Speaker 3: how did the economists and everyone else get it wrong?
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  Speaker 3: Could it be it's just because they hate Donald Trump.
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  Speaker 3: We'll explain it to you. Also, the President has a
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  Speaker 3: major update on the straight of war moves and it
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  Speaker 3: now means that those tolls that were promised that we're
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  Speaker 3: going to be paid they may be disappearing because of
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  Speaker 3: a new deal. It's the forty seven Morning Update and
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  Speaker 3: it starts right.
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  Speaker 2: Now, story number one.
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  Speaker 3: All sixty seven economists got Donald Trump's inflation report wrong.
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  Speaker 3: That's right, America. They want you to believe the economy
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  Speaker 3: is terrible. But real inflation it just dropped by zero
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  Speaker 3: point four percent. That is the biggest drop in six years.
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  Speaker 3: Bloomberg surveyed sixty seven economists, and sixty seven of those economists,
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  Speaker 3: like I said, got it wrong. Now, the latest consumer
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  Speaker 3: price index shows that inflation cooled much more than the
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  Speaker 3: analysts had expected. Consumer price is following zero point four
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  Speaker 3: percent from the previous month. Again, that is the largest
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  Speaker 3: monthly declined since the early months of the COVID nineteen pandemic. Now,
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  Speaker 3: while the annual inflation rate slowed also to three point
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  Speaker 3: five down from four point two in May. Of US
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  Speaker 3: had generally expected inflation to well somewhat cool, but not
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  Speaker 3: this much and certainly not this fast. Now. The financial
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  Speaker 3: markets they reacted quickly. Stocks moved higher, Treasury yields fell,
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  Speaker 3: and investors increased expectations that the Federal Reserve could leave
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  Speaker 3: interest rates unchanged in the near term because inflation came
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  Speaker 3: in cooler than forecasted by all. The quote unquote experts. Now,
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  Speaker 3: much of the improvement came from lower energy costs. Gasoline
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  Speaker 3: prices dropped sharply during June, contributing significantly to the overall
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  Speaker 3: decline in inflation. And while lower fuel prices were the
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  Speaker 3: biggest driver, the report also showed that core inflation now
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  Speaker 3: that includes food and energy, was essentially flat for the
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  Speaker 3: month and slow to two point six percent over the
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  Speaker 3: past year. That's not just good news. That is great
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  Speaker 3: news for all Americans. As for President Trump, this report
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  Speaker 3: is an opportunity for him to argue that the economy
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  Speaker 3: is moving in the right direction under his administration. And
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  Speaker 3: throughout the year, he had maintained that inflation would come
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  Speaker 3: down while economic growth remain resilient, and today's report supports
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  Speaker 3: the view that inflation ease more than many forecasters had anticipated.
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  Speaker 3: You got to ask yourself the question, is it because
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  Speaker 3: the media and the economists they hate President Trump and
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  Speaker 3: they want him to have a big loss in the
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  Speaker 3: midterm elections. That's why they keep preaching doom and gloom.
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  Speaker 3: Even though I'll say it again, this is the biggest
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  Speaker 3: inflation drop in six years. Now, what this also means,
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  Speaker 3: and it's also very important for you to understand that
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  Speaker 3: this report represents meaningful progress compared with the elevated inflation
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  Speaker 3: reading scene earlier this year. When you have lower monthly inflation,
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  Speaker 3: that can translate into less pressure on household budgets, and
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  Speaker 3: it also reduces the need for additional interest rate increases
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  Speaker 3: if the trend continued. The bottom line is this today's
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  Speaker 3: FLA report came in much better than expected. That's why
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  Speaker 3: the media is not going to be talking about it.
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  Speaker 3: And if it was a bad report, it would have
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  Speaker 3: been leading the news on every channel, but now they
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  Speaker 3: don't want you to know this Now the markets they
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  Speaker 3: also welcome the news. It also strengthened the argument that
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  Speaker 3: inflation pressures ease significantly during June could be a real
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  Speaker 3: sign of what's to come. Now, whether this marks the
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  Speaker 3: beginning of a lasting trend, it's going to depend on
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  Speaker 3: the future reports. It's going to depend on energy prices
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  Speaker 3: and broader economic conditions. But one thing is for sure.
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  Speaker 3: Today's data shows that were undeniably stronger as a country
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  Speaker 3: than all the economists talking to Bloomberg had anticipated. And
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  Speaker 3: the reason why is because President Donald Trump continues to
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  Speaker 3: push policies that put the American worker ahead of everyone else.
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  Speaker 2: Next story number two.
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  Speaker 3: The Strain Offoor Moves remains one of the mostategically important
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  Speaker 3: waterways on Earth. That's why we're talking about it so much.
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  Speaker 3: As I've said before, about one fifth of the world's
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  Speaker 3: oil supply normally passes through the shipping lane each and
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  Speaker 3: every day. President Donald Trump has continued now to escalate
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  Speaker 3: pressure on Iran while also adjusting parts of his strategy,
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  Speaker 3: and today Trump said no country should be charging ships
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  Speaker 3: a fee to pass through the Strain of Wor Moves,
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  Speaker 3: backing away from that earlier proposal for a US imposed
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  Speaker 3: transit fee.
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  Speaker 1: Now.
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  Speaker 3: I'm going to have more on that in a moment.
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  Speaker 3: But the military situation remains extremely tense. The United States
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  Speaker 3: has continued intense strikes against the Iranian military targets after
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  Speaker 3: accusing Tehran of violating previous understandings and threatening shipping throughout
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  Speaker 3: the Persian Gulf. Iranian forces have also responded with missile
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  Speaker 3: and drone attacks targeting Gulf region facilities and maritime traffic,
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  Speaker 3: keeping the entire region well on edge. Now. One of
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  Speaker 3: the biggest concerns right now is still very much commercial shipping.
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  Speaker 3: Major shipping companies are continuing to monitor the situation carefully,
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  Speaker 3: and vessel traffic through the strait has slowed significantly. Why
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  Speaker 3: Because the insurers and the cargo companies and the tanker
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  Speaker 3: operators are now weighing the real growing risk from Iran.
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  Speaker 3: Every reduction in shipping raises concerns about higher energy prices
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  Speaker 3: and potential supply disruptions if the conflict worsens. Meanwhile, Iran's
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  Speaker 3: political leadership is also signaling that it intends to maintain
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  Speaker 3: quote unquote their pressure. According to new reports, lawmakers in
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  Speaker 3: Tehran are advancing legislation related to Iranian's control over the
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  Speaker 3: Strait of Hormuz. That is a move that analysts believe
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  Speaker 3: is intended to both strengthen Iran's negotiating position and also
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  Speaker 3: demonstrate resolve to mess sickly and send a clear message
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  Speaker 3: of the US and the Middle East that they're not
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  Speaker 3: done fighting now. From Washington, the Trump administration is continuing
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  Speaker 3: to argue that freedom of navigation must be protected and
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  Speaker 3: that Iran cannot be allowed to threaten one of the
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  Speaker 3: world's most important maritime choke points. Now. Military analysts also
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  Speaker 3: say the United States now faces two well simultaneous objectives.
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  Speaker 3: Number One, protect international shipping, and then number two, to
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  Speaker 3: prevent the conflict from expanding into a broader regional war
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  Speaker 3: involving additional countries that Iran would love to bring into
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  Speaker 3: the mix. Now these goals are becoming increasingly difficult. Why
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  Speaker 3: because Iran continues to act more and more erratic each
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  Speaker 3: and every day. Now the financial markets are also watching
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  Speaker 3: every development closely, and this does have an impact on
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  Speaker 3: you and your family's budget. Oil prices have climbed sharply
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  Speaker 3: amid the renewed fears of supply disruptions, and investors try
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  Speaker 3: to determine whether this becomes a prolonged confrontation or whether
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  Speaker 3: diplomacy can eventually reduce tensions. Even rumors surrounding the Strait
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  Speaker 3: of Hormus can move global markets instantly because of its
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  Speaker 3: enormous importance to international energy. Now, President Trump has also
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  Speaker 3: made it clear that he believes America's role in protecting
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  Speaker 3: international shipping has come at significant costs in the United
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  Speaker 3: States of America, and that's why he talked about having
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  Speaker 3: a proposed transit fee. Well, let's talk about what has
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  Speaker 3: happened with that in the last twenty four hours now.
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  Speaker 3: President Donald Trump announced on Tuesday afternoon that he has
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  Speaker 3: now decided to replace his proposed twenty percent reimbursement fee
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  Speaker 3: on cargo ships transiting the Strait of Hormuz with trade
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  Speaker 3: and investment deals involving Gulf States, while maintaining a blockade
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  Speaker 3: on ships traveling to or from Iranian ports or carrying
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  Speaker 3: Iranian cargo that would include their oil. Quote is falling
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  Speaker 3: like never before, thanks to the awesome power of the
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  Speaker 3: United States military, Trump said on true Social He credited
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  Speaker 3: the Secretary of War Pete Headseth, the Chairman of the
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  Speaker 3: Joint Chiefs, and the US Central Command, and American service
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  Speaker 3: members for the victory. Trump said the Strata Ramus is
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  Speaker 3: open to all ships traffic except for Iran, blaming Tehran
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  Speaker 3: saying they're lying, violent and malicious leadership for placing the
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  Speaker 3: country and a path towards quote total destruction. The President saying,
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  Speaker 3: we will therefore have a full blockade, but only on
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  Speaker 3: ships coming to and from Iranian ports or carrying anything
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  Speaker 3: that has to do with Iranian cargo. And the President
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  Speaker 3: announced then that he would replace that twenty percent fee
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  Speaker 3: that he proposed Monday to reimburse the United States for
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  Speaker 3: protecting international shipping through the Waterway with something different, saying, quote,
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  Speaker 3: based on highly productive conversations with Middle East leadership, I've
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  Speaker 3: decided to replace the twenty percent United States reimbursement fee
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  Speaker 3: with trade and investment deals that the various Golf States
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  Speaker 3: will be making into the United States of America. The
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  Speaker 3: President also described the planned investment as massive and said
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  Speaker 3: they would also be extraordinarily good for the Gulf States
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  Speaker 3: and their futures as well. As everyone is aware, we
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  Speaker 3: have the largest dollar investment into the United States of
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  Speaker 3: any country in history, but these new investments will make
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  Speaker 3: the number even larger, and we will see factories, plants,
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  Speaker 3: and equipment pour into the United States at historic levels,
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  Speaker 3: which will then create additional millions of high paying American jobs.
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  Speaker 3: The president said, America's winning again, winning like never before.
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  Speaker 3: The days of Iran killing hundreds of thousands of people,
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  Speaker 3: including fifty two thousand protesters, are over, and most importantly,
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  Speaker 3: Iran will never have a nuclear weapon now. Trump's announcement
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  Speaker 3: also came after US forces carried out a five hour
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  Speaker 3: mission targeting Iranian coastal defense systems, missile and drone sites,
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  Speaker 3: and maritime capabilities to further degrade Iran's ability to attack
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  Speaker 3: commercial shipping. US Central Command said the strikes hit military
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  Speaker 3: targets across Iran, including many areas that were very close
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  Speaker 3: to where the shipping channel is. Now, Trump had declared
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  Speaker 3: the ceasefire over and said the United States would take
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  Speaker 3: over the Strait of horm Moves and become its guardian.
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  Speaker 3: Trump first announced that twenty percent reimbursement on Monday, declaring
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  Speaker 3: that the United States and the Straight of hor Moves
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  Speaker 3: would be open and it will remain open with or
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  Speaker 3: without Iran. And that is when he said the United
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  Speaker 3: States was reinstating that Iranian blockade, which would only stop
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  Speaker 3: Iran ships or customers from entering or leaving, while all
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  Speaker 3: other countries would have fair and open use of the strait.
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  Speaker 3: Trump said the United States would expect to be reimbursed
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  Speaker 3: for protecting international shipping at that rate of twenty percent
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  Speaker 3: on all cargo ships. Now, the President has clearly changed that.
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  Speaker 3: Now here's what's happened. When it comes to the price
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  Speaker 3: of that pump. Oil prices have risen four percent in
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  Speaker 3: early trading on Monday. Going into Tuesday. Goldman Sachs came
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  Speaker 3: out and warned that the renewed escalation would increase short
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  Speaker 3: term risk of higher prices by further disrupting golf exports.
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  Speaker 3: And that is exactly why the President's made it clear
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  Speaker 3: that in America, we have to continue to drill, baby, drill.
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  Speaker 3: One thing is for sure, the President is being very
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  Speaker 3: proactive right now making sure that Iran doesn't hold the
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  Speaker 3: world hostage. And also the President says the US will
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  Speaker 3: knock out Iran's power plants and bridges next week unless
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  Speaker 3: the regime makes a deal. Take a listen to what
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  Speaker 3: the President had to say in his own words, strikes
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  Speaker 3: were seen this week against Iran will expand are you
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  Speaker 3: considering hitting energy targets or other locations inside of land.
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  Speaker 1: I'll save the energy targets for last, but ultimately we'll
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  Speaker 1: hit energy targets. Yeah, but we're going to hit them
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  Speaker 1: very hard. Tonight, We're going to hit him very hard.
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  Speaker 1: Tomorrow night, we're gonna hit him very hard the night after.
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  Speaker 1: And then next week it gets really bad for them
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  Speaker 1: because next week comes the UH power plants. Next week
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  Speaker 1: comes the bridges. We're going to knock out all their
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  Speaker 1: power plants. We're going to knock out all the bridges
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  Speaker 1: unless they get to the table and negotiate. Do you
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  Speaker 1: believe the Iranians are serious about making a deal. I
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  Speaker 1: think they have no choice.
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  Speaker 2: Why haven't they yet?
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  Speaker 1: I think if I didn't do the way I'm doing,
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  Speaker 1: they would never make a deal.
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  Speaker 3: So there's the President, in his own word, saying that
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  Speaker 3: next week the US will knock out o Rans, power
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  Speaker 3: plans and bridges unless the regime makes a deal. We'll
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  Speaker 3: obviously keep you updated on all of this.
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  Speaker 2: Thank you for listening to the forty seven Morning Update
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  Speaker 2: with Ben Ferguson. Please make sure you hit subscribe wherever
• 13:58
  Speaker 2: you're listening to this podcast right now and for more
• 14:01
  Speaker 2: in depth news, also subscribe to the Ben Ferguson podcast
• 14:05
  Speaker 2: and we will see you back here tomorrow