Cuts are being made across the U.S. government. Lawmakers, like Senate Majority Leader John Thune, say the American people voted for change but note he and his colleagues will fight to keep necessary services running.
“It’s important that you don’t undermine important services. In many cases, as you point out, there are some that affect my state, and there are some that affect all of my colleagues’ states around the country. We will work with the administration as they move forward to ensure that important services that have to do with health and safety, for example, are protected and preserved.”
The Trump Administration hopes these cuts will bring government spending down, and in turn, help tame inflation. While it has only been one month since Trump took office, Administration officials say inflation will not go away overnight.
“We’re still going to see some memory of Biden’s inflation. It’s not going to go away in a month, but the 10-year treasury before the last consumer price index had dropped about 40 basis points; 40 basis points because markets were optimistic about our ability to fight inflation. 40 basis points is kind of not a fun thing to say. I was kind of taught that way I apologize, but the way to think about it is for a typical mortgage, if that affects the mortgage rate, then it’s going to save a typical family buying a house about $1,000 a year, and that’s just in our first month.”
The Consumer Price Index, along with the Producer Price Index, both came in hotter than expected this month. The next CPI report comes out March 12th.
