Why are Americans so pissed off right now? Take a look at three straight monthly declines in disposable income growth and that same metric over the last year.
Real wages are falling as disposable income declines and households are drawing down savings.
With rising inflation not having yet peaked this will get worse before it gets better and real spending is likely to decline in May.
Here one can see where consumers are pulling back on spending as disposable income declines.
Take a look at inflation across the PCE index. Note how far we are away from the 2% target. Both topline and the core index will move higher next month
Think tariffs no longer matter?
Think again. Take a look for yourself.
Underlying inflation is rising.
Core is approaching the lower end of the Fed's policy range of 3.5% to 3.7%. No way the Fed can cut rates under such conditions especially as the core rate is likely to increase further.
Share this Scrolly Tale with your friends.
A Scrolly Tale is a new way to read Twitter threads with a more visually immersive experience.
Discover more beautiful Scrolly Tales like this.