{"id":1544041,"date":"2025-06-27T12:47:03","date_gmt":"2025-06-27T16:47:03","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1544041"},"modified":"2025-06-27T12:47:03","modified_gmt":"2025-06-27T16:47:03","slug":"doge-sparks-biggest-plunge-in-social-security-handouts-ever-feds-favorite-inflation-indicator-ticked-higher-in-may","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/doge-sparks-biggest-plunge-in-social-security-handouts-ever-feds-favorite-inflation-indicator-ticked-higher-in-may\/1544041\/","title":{"rendered":"DOGE Sparks Biggest Plunge In Social Security Handouts Ever; Fed’s Favorite Inflation Indicator Ticked Higher In May"},"content":{"rendered":"

DOGE Sparks Biggest Plunge In Social Security Handouts Ever; Fed’s Favorite Inflation Indicator Ticked Higher In May<\/span><\/p>\n

\n

The Fed’s favorite inflation indicator – Core PCE – came in hotter than expected in May, rising 0.2% MoM (+0.1% MoM exp) and +2.7% YoY (+2.6% YoY exp)…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/p>\n

Not exactly the hyped-up inflationary surge the tariff fearmongers had hoped for as non-durable goods price show modest increase MoM<\/strong>…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/p>\n

Headline PCE rose 0.1% MoM (as expected) and the YoY change ticked up to +2.3% YoY…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/p>\n

Non-durable goods flipped from deflationary to inflationary (modestly)<\/strong> in May…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/p>\n

SuperCore PCE inched higher on a YoY basis (from +3.07% to +3.12% YoY)…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/p>\n

Both personal income and spending tumbled in May (the former by the most since Sept 2021)<\/strong>…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/p>\n

On the income side, govt workers saw wage growth slow:<\/p>\n

Private worker wages rose 4.6% yoy, up from 4.4% and the highest since Dec 24<\/p>\n

Govt worker wages rose 5.2%, down from 5.3% and lowest since Oct 22<\/strong><\/p>\n

<\/a><\/p>\n

But, Income’s drop was mainly due to a plunge in government handouts…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/p>\n

With the biggest drop in social security benefit handouts ever as DOGE killed all the payments to those ‘dead’ or extremely old people…<\/strong><\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/p>\n

The savings rate dropped significantly<\/strong> to 4.5% of DPI…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/p>\n

Is there enough here to nudge The Fed towards a cut? Or do we keep waiting for the ‘lagged’ effect of tariffs to finally show up in prices?<\/p>\n

This is the ‘transitory’ no inflationary impact period!<\/strong><\/em><\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nFri, 06\/27\/2025 – 08:47<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/feds-favorite-inflation-indicator-ticked-higher-may-social-security-handouts-plunged<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

DOGE Sparks Biggest Plunge In Social Security Handouts Ever; Fed’s Favorite Inflation Indicator Ticked Higher In May The Fed’s favorite inflation indicator – Core PCE…<\/p>\n","protected":false},"author":0,"featured_media":1544042,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1544041","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1544041","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1544041"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1544041\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1544042"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1544041"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1544041"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1544041"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}