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Inflation Stays Stuck at 4-Year Low, But American Grocery Bills Tell a Different Story
The final CPI report of 2023 delivered a mixed bag for American wallets, showing inflation holding at its lowest level in four years but hiding persistent pressures on everyday essentials.
cpi report
According to data released Tuesday by the Bureau of Labor Statistics, the Consumer Price Index (CPI) rose 2.7% over the 12 months ending in December. The core CPI reading, which excludes volatile food and energy costs, came in at 2.6%. On a monthly basis, prices climbed 0.3%.
cpi report
While the White House has been ramping up its affordability push amid voter frustration, the report reveals that consumers are still grappling with high price levels, particularly in the supermarket aisle.
A Closer Look at the Numbers
Beneath the headline year-over-year figure, which held steady from November, lie details that hit closer to home. In December, grocery prices jumped 0.7%—the largest monthly increase since August 2022. This surge in food costs is a stark reminder that the relief felt at the gas pump isn’t always mirrored at the checkout counter.
cpi report
However, there were some pockets of relief. Used car prices fell by more than 1%, and new car prices remained flat for the month, suggesting automakers have so far absorbed tariff-related costs. Nationwide, electricity prices also dipped slightly, though they remain nearly 7% higher than a year ago.
Data Gaps and Fed Uncertainty Cast a Shadow
This report comes with significant caveats. Due to the October government shutdown, the BLS did not release data for that month, creating a gap in the timeline. Some economists, including Federal Reserve officials, believe this disruption may have led to an understatement of true inflation pressure, as the agency had to estimate certain costs like shelter for October.
cpi report
The data lands as the Federal Reserve remains divided on the path of interest rates. Although the Fed paused its rate-hike campaign after three cuts last year, some officials continue to express concern. Inflation, though down from its peak, has stubbornly remained above the Fed’s 2% target since 2021.
The Political and Personal Impact
With consumer sentiment at historic lows, the political stakes are high. The Biden administration’s affordability agenda is squarely focused on this pain. In a recent move, President Biden stated he was in talks with major tech firms to prevent Americans from “picking up the tab” for the massive data centers driving the AI boom, which threaten to spike power costs.
cpi report
For the average American family, however, the economic picture is defined by the tangible cost of living. The drop in overall inflation offers little consolation when the weekly grocery bill continues to climb and utility costs remain elevated.
What to Watch Next
All eyes will now be on the Fed’s next meeting. Will steady inflation data give them confidence to consider rate cuts later in 2024, or will the stickiness of core categories and data uncertainties prompt a more cautious stance? Furthermore, the ongoing impact of geopolitical events and supply chains could reintroduce volatility.
For now, the December CPI report confirms that the battle against inflation is entering a new, more nuanced phase—one where the national average tells less of the story than the individual receipts piling up on kitchen counters across the country.
Editor’s note: This story has been updated with additional details and context.
Senior aides defend DNI Tulsi Gabbard, accuse Wall Street Journal of misleading reporting
A sharp public clash has erupted between aides to Director of National Intelligence (DNI) Tulsi Gabbard and The Wall Street Journal, after the newspaper published a report centered on a highly classified whistleblower complaint alleging wrongdoing by the Trump Cabinet official.
Gabbard’s team has forcefully rejected the report, calling it misleading, politically motivated, and designed to create controversy where none exists.
What the WSJ Whistleblower Report Claims:Tulsi Gabbard
According to the Wall Street Journal, the whistleblower complaint involving Gabbard is so highly classified that it is reportedly locked in a secure safe, with access restricted due to national security concerns.
The Journal noted that:
The whistleblower’s attorney has not reviewed the complaint
Congress has not been given access, a situation described as having “no known precedent”
The intelligence community’s acting inspector general (IG) reviewed the allegations
The report further stated that while allegations directly tied to Gabbard were deemed not credible, the IG could not reach a determination on a separate allegation involving another federal agency.
Whistleblower Attorney Raises Concerns
Tulsi Gabbard
The whistleblower’s attorney, Andrew Bakaj, reportedly sent a letter in November accusing Gabbard of preventing Congress from reviewing the complaint by not providing security clearance guidance.
Bakaj also told the Journal he was never informed that the inspector general had made credibility determinations regarding any part of the complaint.
These claims added fuel to the controversy and drew renewed attention to the handling of classified whistleblower materials within the intelligence community.
Gabbard’s Chief of Staff Fires Back
Gabbard’s chief of staff, Alexa Henning, publicly slammed the Wall Street Journal in a post on X (formerly Twitter), accusing the outlet of burying critical facts.
“As if the @WSJ needed to provide more examples of how it’s utter trash,” Henning wrote.
She emphasized that no wrongdoing was found and argued the paper downplayed that conclusion by placing it deep within the article.
“Even the Biden-era IC Inspector General concluded the whistleblower’s allegations against DNI Gabbard were not credible,” Henning added.
Spokesperson Calls Report ‘Disgusting Clickbait’
DNI spokesperson Olivia Coleman echoed the criticism, labeling the Journal’s reporting as the “most disgusting” clickbait she has encountered.
Coleman described the complaint as a politically motivated effort that relied on extreme classification to:
Create false intrigue
Manufacture a misleading narrative
Complicate lawful communication with Congress
She accused the whistleblower of weaponizing their position within the intelligence community to spark controversy rather than seek accountability.
Wall Street Journal Responds with Silence
As of publication, The Wall Street Journal has not issued a public response to the criticism from Gabbard’s aides. The Hill, which reported the backlash, confirmed the Journal did not immediately comment when contacted.
Why This Clash Matters
Tulsi Gabbard
The dispute highlights ongoing tensions surrounding whistleblower protections, classified intelligence oversight, and media accountability in Washington. While the inspector general reportedly dismissed the core allegations against Gabbard, the secrecy surrounding the complaint continues to raise questions and fuel political debate.
For now, Gabbard’s office maintains that the matter is settled, while critics argue transparency remains incomplete.
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Gabbard Aides Slam WSJ as ‘Utter Trash’ but Whistleblower Questions Persist
A heated political and media confrontation has emerged after aides to Director of National Intelligence Tulsi Gabbard publicly attacked The Wall Street Journal (WSJ) over its reporting on a highly classified whistleblower complaint. While Gabbard’s team insists the allegations are baseless, the secrecy surrounding the complaint has fueled renewed debate and skepticism in Washington.
What the Wall Street Journal Reported
According to a report published by the Wall Street Journal 👉 https://www.wsj.com
the whistleblower complaint involving Gabbard is considered so highly classified that it is allegedly secured in a safe due to national security risks.
The report revealed several unusual details:
The whistleblower’s attorney has not reviewed the complaint
Congress has not been granted access
The situation was described as “without known precedent”
These disclosures added a negative sentiment, raising concerns about transparency, oversight, and accountability within the intelligence community.
Inspector General Finds No Credible Evidence Against Gabbard
In a positive development for Gabbard, the article acknowledged that the acting inspector general (IG) concluded allegations directly involving the DNI were not credible after reviewing her responses.
However, the IG reportedly could not make a determination regarding a separate allegation tied to another federal agency, leaving lingering uncertainty and political debate.
Whistleblower Attorney Challenges Handling of Complaint
Whistleblower attorney Andrew Bakaj claimed in a November letter—reviewed by the Journal—that Gabbard failed to provide security clearance guidance that would allow Congress to review the complaint.
Bakaj also stated he was never informed that the IG had reached any credibility determinations, adding to the negative narrative surrounding the case and how classified complaints are managed.
Gabbard’s Chief of Staff Launches Fierce Counterattack
Gabbard’s chief of staff, Alexa Henning, responded aggressively on X (formerly Twitter) 👉 https://x.com
calling the Wall Street Journal’s reporting “utter trash.”
Henning accused the publication of burying critical facts deep within the article and emphasized that no wrongdoing was found.
“Even the Biden-era IC Inspector General concluded the whistleblower’s allegations against DNI Gabbard were not credible,” she wrote.
This response reinforced a positive sentiment among Gabbard’s supporters, framing the report as misleading and politically driven.
DNI Spokesperson Labels Report ‘Disgusting Clickbait’
Adding to the backlash, Gabbard spokesperson Olivia Coleman condemned the article as the most “disgusting” piece of clickbait journalism she had seen.
Coleman argued the whistleblower weaponized their role by hiding allegations within highly classified materials to:
Create false intrigue
Push a manufactured narrative
Obstruct congressional review
Her remarks underscore a broader negative sentiment toward media credibility, while defending the administration’s handling of classified intelligence.
the Wall Street Journal did not immediately respond to requests for comment regarding the sharp criticism from Gabbard’s aides, leaving the dispute unresolved in the public eye.
Bigger Picture: Transparency vs. National Security
Tulsi Gabbard
This controversy highlights the ongoing struggle between national security secrecy and government transparency. While Gabbard’s office stresses that the allegations were dismissed, critics argue the lack of congressional access raises valid concerns.
The clash reflects both positive confidence in official findings and negative public doubt over how whistleblower complaints are handled at the highest levels of government.
In a move that has rattled investors and diplomats alike, President Trump announced sweeping new tariffs on key European Union nations. The decision, linked to a dispute over Arctic sovereignty and Greenland’s resources, directly threatens the fragile EU-US trade deal struck just last July and risks triggering a broader transatlantic trade war.
S&P 500
A Deal Broken, A Market Shaken
The crisis began when President Trump declared that imports from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland would face immediate 10% tariffs starting February 1, escalating to a punishing 25% by June 1. The stated goal is to pressure Denmark and Greenland into a deal granting the U.S. control over the mineral-rich island.
S&P 500
“World Peace is at stake!” President Trump stated, arguing that the U.S. has subsidized European allies “for many years by not charging them tariffs.” He declared, “Now, after centuries, it is time for Denmark to give back.”
The announcement triggered an instant and severe reaction on Wall Street. The S&P 500 index, a key barometer of U.S. corporate health and investor sentiment, fell precipitously as traders assessed the impact of disrupted transatlantic supply chains and higher costs on major multinational companies. The volatility index (VIX), often called the “fear gauge,” spiked as market panic set in.
S&P 500
European Leaders Unite in Defiance
The response from Europe was swift and unified. Ursula von der Leyen, President of the European Commission, criticized the move at the World Economic Forum in Davos, calling the tariffs “a mistake between long-standing allies.”
“In politics, as in business, a deal is a deal,” von der Leyen stated, referencing the hard-won EU-US trade agreement finalized in July. “And when friends shake hands, it must mean something.” She warned that the tariffs “would undermine transatlantic relations and risk a dangerous downward spiral,” vowing that “Europe will remain united, coordinated, and committed to upholding its sovereignty.”
S&P 500
The confrontation is not merely economic but also geopolitical. The tariffs follow a recent joint military exercise in Greenland, led by the Danish military, which included troops from other European nations. This activity was part of a concerted effort to strengthen Europe’s strategic “footprint” in the increasingly contested Arctic region, where melting ice is opening new shipping routes and access to untapped resources.
The Stakes for the U.S. Economy and Investors
For American investors and consumers, the implications are direct and worrying:
Corporate Earnings at Risk: Countless U.S. companies rely on seamless trade with Europe, both for sales and for components. Sudden tariffs act as a tax on these activities, threatening to squeeze profit margins and lower stock valuations.
Inflationary Pressure: Tariffs often lead to higher prices for imported goods. Consumers could face increased costs for a range of products, from German automobiles to French wines and Danish pharmaceuticals.
Retaliation Fears: The EU has a history of preparing targeted countermeasures in trade disputes. European retaliation could hit iconic American exports, further harming U.S. farmers and manufacturers.
Uncertainty is the Enemy: Financial markets detest unpredictability. This abrupt shift in trade policy creates profound economic uncertainty, discouraging business investment and complicating long-term planning for corporations globally.
S&P 500
Historical Context: A Pattern of Confrontation
This episode marks a significant escalation in Trump’s “America First” trade policy. The previous EU-US trade deal he negotiated was hailed by the President as “the biggest deal ever made,” designed to bring “stability” and “predictability.” Its potential collapse within six months reveals the fragility of agreements in the current geopolitical climate and raises questions about the reliability of the U.S. as a trade partner.
The focus on Greenland sovereignty is also a dramatic twist. U.S. interest in purchasing Greenland was publicly floated and rejected during Trump’s first term. The current strategy of using severe tariffs as leverage to gain control of the island’s resources represents a more aggressive and coercive approach to Arctic security and resource competition.
What Comes Next?
All eyes are now on the February 1 implementation date and Europe’s response. Key questions will determine the market’s direction:
Will the EU proceed with a formal WTO challenge and announce its own retaliatory tariffs?
Can behind-the-scenes diplomacy avert the planned June 1 tariff increase to 25%?
How will the Federal Reserve view this new source of inflation and economic disruption as it sets interest rate policy?
For now, the message from the plunging S&P 500 is clear: the market views a full-blown trade war with a major economic partner as a direct threat to economic growth and corporate profitability. The coming weeks will test the resilience of the transatlantic alliance and the stability of global financial markets.
President Donald Trump has unveiled a new policy framework urging Congress to pass a package of reforms aimed at lowering drug prices, cutting insurance premiums, and improving healthcare price transparency. The announcement was shared through a short video and supported by a White House fact sheet outlining what the administration calls the “Great Healthcare Plan.”
According to an Axios report by Peter Sullivan, the proposal is designed to counter Democratic criticism over the expiration of Affordable Care Act subsidies and rising healthcare costs. You can read the original coverage on Axios here: 👉 Trump calls on Congress to enact the Great Healthcare Plan
While the plan signals a positive push for affordability, it also carries political and legislative risks due to deep divisions in Congress.
Why the Trump Health Costs Framework Matters:The great healthcare plan
The framework comes at a critical time as healthcare affordability becomes a key issue ahead of the midterm elections. Democrats have criticized Republicans for allowing enhanced Affordable Care Act subsidies to expire, which could raise premiums for many Americans.
Trump’s proposal attempts to reposition the GOP as proactive on healthcare costs. However, experts say the plan could struggle to gain traction in a highly polarized Senate and House.
In a five-minute video message shared publicly on YouTube, Trump outlined several core ideas: ▶️ Watch here: Trump healthcare video statement
1. Direct Support Instead of ACA Subsidies
Trump rejected restoring enhanced Affordable Care Act subsidies. Instead, he suggested sending financial support directly to patients, though specific implementation details were not explained. This idea could empower consumers but raises concerns about clarity and execution.
2. “Most-Favored Nation” Drug Pricing Proposal
The plan pushes Congress to codify Trump’s most-favored nation pricing model, which aims to align U.S. drug prices with what other developed countries pay. ✅ Positive: Could significantly reduce prescription costs. ❌ Negative: Some Republicans oppose it, arguing it interferes with free-market principles.
3. Increased Price Transparency
Healthcare providers and insurers would be required to display prices more clearly so consumers can better compare costs and avoid surprise bills.
4. Holding Insurers Accountable
The framework also proposes publishing data on insurer profits and how often they deny care, increasing transparency and public accountability.
Political Outlook: Will It Pass Congress?
A White House official stated that the proposal might not require the party-line reconciliation process, suggesting hopes for bipartisan support. Still, skepticism remains over whether lawmakers will move the plan forward or simply use it as a political talking point.
⚠️ Risk Factor: With healthcare deeply divided along party lines, passing meaningful legislation could be challenging. 🌟 Opportunity: If successful, the framework could lower costs and improve consumer trust in healthcare pricing.
What to Watch Next:The great healthcare plan
The big question is whether congressional Republicans will actively pursue legislation based on this framework or leverage it mainly as campaign messaging. As healthcare costs remain a top voter concern, the next few months could determine whether this bold plan becomes real reform or political strategy.