Core PCE is Rising—So Why Is Nobody Sounding the Alarm?
The Fed’s Favorite Lie: What June’s Inflation Report Isn’t Telling You
Welcome to the Economic Twilight Zone
The official narrative is clear: the Federal Reserve held interest rates steady again, and inflation is “mostly under control.” But if you think the story ends there, think again.
This week, the Commerce Department’s report on the Fed’s favored inflation gauge—the Personal Consumption Expenditures (PCE) index—revealed that consumer prices rose by 0.3% in June, jumping to a 2.6% annual increase. That may sound mild, but it's the third straight acceleration and another crack in the fragile facade of “stable prices.”
So let me ask you—do you really feel like inflation is under control? Does your grocery bill say 2.6%? Or is your reality a lot closer to 20% over the last two years?
A Deeper Dive Into Deception
The core PCE—stripping out food and energy, as if Americans can live without either—also rose 0.3% in June, up to 2.8% annually. That’s higher than expected. Again.
And yet, the Fed shrugs.
They’ve held interest rates steady for the fifth straight meeting. Not because inflation is under control—but because they're trapped. Raise rates, and they’ll risk detonating the overleveraged banking system. Cut rates, and inflation will surge. So they sit, paralyzed, hoping we won’t notice that the walls are closing in.
Meanwhile, wages rose a pathetic 0.1% in June—the slowest since last November. And the personal savings rate? Stuck at 4.5%. Translation: Americans are treading water while the cost of staying afloat keeps rising.
Durable goods up. Services up. Food and fuel volatility conveniently ignored. But your paycheck? Flatlined.
Tariffs, Trump, and the Truth the Fed Won’t Admit
Let’s talk about what’s really moving the needle: tariffs.
The central bank and their media proxies want to pretend these price hikes are “transitory,” sparked by Trump-era tariffs reasserting themselves. But that’s only part of the story. The deeper truth is this: we are entering the terminal phase of a fiat currency experiment that began in 1971. Tariffs are just the latest pressure point exposing its fragility.
Fed Chair Jerome Powell admitted this week that tariffs “have begun to show through more clearly to prices.” But he quickly downplayed it, insisting the effects are “uncertain.” Translation: they don’t want you to panic—yet.
But what happens when the next shock hits? A real escalation in trade disputes? Another round of reckless government spending? Or a Fed pivot that reignites asset inflation and destroys the purchasing power of retirees and savers?
What Happens Next—and What You Must Do Now
Markets are waking up. The odds of a rate cut in September dropped from 47% to 39% overnight. Investors are realizing what you already feel in your gut: this isn't over. It’s accelerating.
So here’s the real question: Are you going to wait for the mainstream to admit the storm is coming, or are you going to build your financial ark now?
Here’s what I recommend:
- Diversify out of fiat. Get real assets—gold, silver, energy. Anything the Fed can’t print.
- Study sound money. Understand why the system is rigged against savers and wage-earners.
- Prepare for political volatility. As Trump ramps up pressure on the Fed, expect more manipulation—not less.
We’re not witnessing a cycle. We’re witnessing a collapse in confidence. And confidence is the only thing propping up this paper-money illusion.
Final Thought
The Fed’s preferred inflation metric is rising. Wages are stagnating. Savings are flat. Still think the system is working for you?
If you’re ready to step off the hamster wheel of government-managed decline, I’ve got two resources to help you start:
Download my free digital book, Seven Steps to Protect Your Bank Accounts, packed with real-world tactics to shield your savings from the storm ahead:
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Control the money, and you control the people. Free the money, and you free humanity.
