by WorldTribune Staff, June 1, 2025 Real World News
The core Personal Consumption Expenditures Index (PCE), a key inflation measurement for the Federal Reserve, hit a four-year low in April, according to the Bureau of Economic Analysts (BEA).
The index, which takes food as well as energy costs out of the equation with pricing, rose at 2.5 percent year over year.
“Excluding food and energy, the PCE price index increased 2.5 percent from one year ago. Disposable personal income (DPI)—personal income less personal current taxes—increased $189.4 billion (0.8 percent) and personal consumption expenditures (PCE) increased $47.8 billion (0.2 percent),” the BEA reported.
Economic analyst Kathy Bostjancic noted: “The increased tariffs have not yet worked their way into the consumer inflation readings, but we anticipate that the improved inflation trend will reverse in the second half of the year.”
Month over month, the inflation rate increased by only 0.1 percent. There was also a 0.8 percent increase in personal income over the course of April, or $210 billion across the United States. Disposable personal income also increased by 0.8 percent.
Consumer spending increased in the areas of housing, healthcare, food services, gasoline, and a few other goods and services, but decreased it the areas of financial services, recreational goods and vehicles, clothing and footwear, as well as other goods and services.
Meanwhile, Elon Musk said the Department of Government Efficiency (DOGE) is on track to cut $1 trillion in fed spending by mid-2026.
Musk added: “We do expect to achieve over time the trillion dollars of savings,” but that it can’t be done in a few months, and added that “with the support of the president and Congress, could we achieve a trillion dollars of savings? I think so. We’re on track to do so,” he said in reference to the mid-2026 deadline.
While Musk’s time as a formal special government employee is ending, DOGE’s mission and staff will keep going. Additionally, Musk said that he would keep advising President Donald Trump as a friend.
Trump touted Musk’s work, saying that he “did not need this,” referring to how Musk has worked for the government, without pay, in order to cut spending as well as waste, fraud, and abuse in the federal government.
“He’s one of the greatest business leaders and innovators the world has ever produced. He stepped forward to put his very great talents into the service of our nation, and we appreciate it,” Trump said. “Elon has worked tirelessly, helping lead the most sweeping and consequential government reform program in generations.”
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Unreported: Key inflation rate at 4-year low; DOGE sets $ 1 trillion in spending cuts by 2026 added by Editor Two on June 1, 2025
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