1) The Inflation Dragon Rears Its Ugly Head Again

We hate to say we told you so, but yesterday's inflation report was worse than the common headline that the rate nudged up to 3%. The media buried the lede. The headline should have been that for the month, prices were up on an annualized basis by closer to 6%. 

For the past three months, on the heels of the last Fed rate cut, it's up 4.5%. So much for the Biden narrative that he left Trump a strong economy, when the government is on a path to another $2 trillion overspending deficit. 
 

That's a long way from the Fed's 2% target.  

We saw this coming from a mile away by monitoring the CRB commodities index. Here it is again, over the past six months. 
 

2) We Won't Be Fooled Again 

The House Budget Committee will mark up a budget resolution today that includes the Trump tax cut extension. This is in sharp contrast to the Senate version that includes zero tax cuts under that body's dangerous plan to scrap the Trump "one big beautiful bill" strategy and punt the tax issue until later in the year.  

Kudos to House Republicans for moving quickly on tax cuts. But they are foolishly tethering themselves to an absurdly wrong Congressional Budget Office score that says making the Trump tax cuts permanent will cost more than $4 trillion. These are the same math geniuses who told us in 2017 that the Trump tax cuts would COST $2 trillion, when by the end of 2024, revenues are HIGHER than if we hadn't passed the tax cut at all. 

Time for the GOP to start singing the lyric from the classic '60s song by The Who: "We won't get fooled again." Or maybe it should be "We won't be FOOLS again."

We are told there is no law forcing Republicans to use the crooked scores of the CBO. It's time to use real-world scoring that takes account of the explosive growth of the economy from Trump's lower taxes and aggressive deregulation agenda.  

And if anything needs to be paid for, repeal every word of the Biden Inflation Acceleration Act boondoggle - which needs to be restored to reflect its rapidly escalating costs, which Cato now pegs at up to $4.6 trillion.
 

3) Money Laundering Scheme of the Century 

EPA Administrator Lee Zeldin announced Wednesday that he’s found $20 billion in taxpayer money that the Biden administration “parked” at a financial institution — in an apparent effort to hide the dollars. “This scheme was the first of its kind in EPA history, and it was purposefully designed to obligate all of the money in a rush job with reduced oversight.”

Incidentally, $20 billion is like 200 Heritage Foundations!  Claw this money back, Mr. President.

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