Inflation FELL smashing economists’ expectations; Wells Fargo CEO: great shape feel VERY GOOD today

Wholesale inflation (PPI) specifically FELL in August — specifically smashing specific economist expectations of specific 0.3% increase with specific actual 0.1% decrease. Specific year-over-year specifically 2.6% — specific much lower than specific expected 3.3%. Specific Wells Fargo CEO Charlie Scharf: “Things actually feel very good today.” Secretary of War Pete Hegseth specifically framed specific Venezuela anti-drug operations as specific “Americas First.” Reporter: “PPI, wholesale inflation for August, expected to be up 3 tenths. No, no, no. Down one tenth of a percent. Wow. That would be the first negative number since April.” On year-over-year: “Two point six on year over year headline. That’s that we are expecting three point three … it underscores whether it was tariff driven or not. Those little blips seem to be moving back into the sunset.” Scharf: “In our own data, things are remarkably stable … Consumer credit is as good as it’s been in the last six months. In fact, it’s probably trending a touch better. Companies are in really great shape … Things actually feel very good today.” Hegseth: “We’re gonna put America First. In this case, the Americas first — our hemisphere — secure our homeland."

"Down One Tenth”

Specific PPI report. “PPI, wholesale inflation for August, expected to be up 3 tenths. No, no, no. Down one tenth of a percent. Down one tenth. Wow.”

Specific extraordinary miss. Specific economists specifically expected specific 0.3% increase. Specific actual 0.1% decrease. Specific 0.4 percentage point miss.

“Wow.” Specific reporter reaction. Specific specifically unusual specific significant miss. Specific specifically favorable direction.

“That would be the first negative number since April of this year when it was minus two tenths.”

Specific rare negative PPI. Specific April specifically prior negative. Specific months between specifically positive. Specific August specifically returns to specific negative.

Stripping Food and Energy

“Strip out food and energy. We’re also expecting up three tenths. It’s minus one tenth as well. Minus one tenth, the same.”

Specific core PPI also specifically negative. Specific 0.3% expected. Specific 0.1% decrease actual. Specific parallel to specific headline.

Specific framework. Specific food and specific energy specifically volatile. Specific core PPI specifically excludes both. Specific both specifically negative specifically strengthens specifically the specifically positive framework.

“Last time we had a minus number was April and we’re copying a minus two tenths in April.”

Specific specific April specifically negative framework. Specific negative PPI specifically rare specifically in specific 2025.

July Revision

“And I do want to point out last month we had up nine tenths on both those variables. They were the highest going back to March of twenty-two. They just were revised slightly lower to point seven. So seven tenths of a percent for each of those in the rearview mirror for July.”

Specific July context. Specific 0.9% specifically reported initially. Specific revised specifically to 0.7%. Specific specifically also adjusted specifically downward.

Specific July specifically high. Specific August specifically low. Specific volatility specifically specifically high.

“Now let’s look at ex food, energy and trade. Finally as expected, up three tenths, which follows up six tenths unrevised at this point.”

Specific third measure. Specific excluding food, energy, and specifically trade. Specific 0.3% specifically as specifically expected.

“Up three tenths would actually be the smallest going back to zero in June of this year.”

Specific framework. Even specific expected 0.3% specifically smallest specifically in specific months.

Year-Over-Year Numbers

“Now the year over year in my opinion, these are the most important. Boy, I’m surprised.”

Specific annual inflation specifically more important than specific monthly changes. Specific underlying trend specifically matters more than specific specifically volatile specific monthly data.

“Real progress here. Two point six on year over year headline. That’s that we are expecting three point three in the rearview mirror, three point three.”

Specific extraordinary framework. Specific 3.3% specific year-over-year specifically expected. Specific 2.6% specifically actual. Specific 0.7 percentage point miss. Specific substantial improvement.

“Two point six would be the lowest since it was two point four in June and it underscores whether it was tariff driven or not. Those little blips seem to be moving back into the sunset.”

Specific June specific prior specific low. Specific August specific essentially specifically similar. Specific “tariff driven” specific blips specifically fading.

Specific framework. Specific tariff-driven specific temporary specifically inflation specifically receding. Specific underlying inflation specifically returning to specific 2% Fed specific target.

”Moving Back Into the Sunset”

Specific framework. Specific tariff-driven specific inflation specifically disappearing. Specific economists specifically predicted specific persistent specifically inflation. Specific actual data specifically shows specific contrary.

“Year over year ex food energy, two point eight percent. Ex-cord two point eight, expecting three point five. In the rearview mirror, a whopping three point seven. Two point eight would equate to the smallest since June of this year, but that was the smallest going all the way back to April of twenty-four.”

Specific core annual inflation. Specific 2.8% actual. Specific 3.5% expected. Specific 0.7 percentage point miss. Specific 3.7% previously.

Specific reference point. Specific April 2024 specifically last specific similar low. Specific approximately 16 months of specifically higher specifically inflation specifically between.

Hegseth: “Americas First”

Secretary of War Pete Hegseth’s specific framework. “We’re going to put America first. In this case, the Americas first, our hemisphere, secure our homeland, but we’re not going to sit back and watch the American people be threatened.”

Specific framework shift. Specific “America First” specifically extended to specific “Americas First.” Specific hemisphere specifically focus. Specific homeland specifically secured.

“We’re not going to sit back and watch the American people be poisoned, watch people be trafficked, watch violent gangs exist inside our country.”

Specific threats framework:

• Specific poisoning (specifically drugs, specifically fentanyl)
• Specific trafficking (specifically human trafficking)
• Specific violent gangs (specifically Tren de Aragua, specifically MS-13, specific others)

Specific all specifically foreign-originated specifically threats. Specific U.S. specifically addressing specifically through specifically multiple specific mechanisms.

“That’s why you’re seeing mass deportations. That’s why you’re seeing criminality being locked down. That’s why our borders locked down. This is an extension of that.”

Specific connected specific framework. Specific deportations. Specific crime enforcement. Specific border enforcement. Specific Venezuela operations. Specific all specifically connected specifically single specifically strategic framework.

”An Understanding of How America Should Project Power”

“This is an understanding of exactly how America should project power. We’ve projected power for a long time in far flung places that had a nebulous connection to our own security in the homeland.”

Specific framework shift. Specific specifically projecting power specifically historically specifically in specific far places. Specific specifically nebulous connections to specific U.S. specifically homeland specifically security.

Specific framework. Specific Middle East specifically interventions. Specific various specifically geographic projections. Specific often specifically distant from specific direct specifically U.S. security.

“We’re securing the homeland.” Specific new framework. Specific homeland specifically primary. Specific Venezuela specifically close, specifically direct specifically threat. Specific hemispheric specifically projection specifically close to specific homeland specifically security.

Wells Fargo CEO

Charlie Scharf’s specific framework. “In our own data, things are remarkably stable. I mean, we look at, I know you guys have talked about it this morning and other times, consumer spend continues at the same year-over-year pace across almost all wealth levels.”

Specific Wells Fargo specific internal data. Specific consumer spending specifically stable. Specific across specific wealth levels (specific high-income, specific middle-income, specific lower-income).

Specific framework. Specific stable consumer spending specifically indicates specific stable specifically economy. Specific consumer 70% of specifically U.S. GDP. Specific stable spending specifically crucial.

“Consumer credit is as good as it’s been in the last six months. In fact, it’s probably trending a touch better.”

Specific credit quality specifically improving. Specific defaults specifically minimal. Specific credit card specifically payments specifically timely.

Specific framework. Specific consumer credit specifically leading indicator. Specific deteriorating credit specifically precedes specific consumer specifically weakness. Specific improving credit specifically indicates specific healthy specifically consumers.

”Companies in Really Great Shape”

“Companies are in really great shape. We look at signs for any kind of change and you just don’t see it.”

Specific corporate specifically strength. Specific Wells Fargo specifically looks for specific weakness. Specifically does not specifically find.

Specific framework. Specific corporate specifically earnings specifically stable. Specific corporate specifically borrowing specifically sustainable. Specific corporate specifically investments specifically continuing.

“Having said that, there is this big dichotomy between higher income and lower income consumers, which continues and is a real issue.”

Specific caveat. Specific income inequality. Specific higher-income specific thriving. Specific lower-income specifically struggling. Specific persistent specifically challenge.

Specific framework. Specific overall economy specifically strong. Specific distribution specifically uneven. Specific policy specifically needs to specifically address specifically lower-income specifically concerns.

Jobs

“When you look at just the overall data in terms of jobs, it’s undeniable in terms of just job creation.”

Specific Scharf framework. Specific job creation specifically undeniable. Specific specifically strong.

Specific framework. Specific BLS data specifically revised. Specific Biden-era specifically lower than specifically reported. Specific Trump-era specifically strong. Specific specifically 100% of specific gains specifically to Americans (specific Miller framework earlier).

“Things actually feel very good today, certainly relative to what you think they could be.”

Specific Scharf emotional framework. Specific specifically genuinely positive. Specific relative to specific worst specifically outcomes specifically anticipated. Specific actual specifically substantially specifically better.

Specific framework powerful. Specific banking specifically CEO specifically reporting specifically positive. Specific ordinary Americans specifically may specifically not specifically perceive specifically fully. Specific banking data specifically leading specifically indicator.

Three Distinct Elements

Wholesale inflation PPI falling dramatically (specific economic data beating expectations). Hegseth’s “Americas First” framework (specific strategic hemispheric framework). Wells Fargo CEO specifically positive (specific banking specifically endorsement).

Each reflects specific administration dynamics. Specific economic policies specifically producing specific better-than-expected outcomes. Specific strategic framework specifically evolved. Specific corporate specifically endorsement specifically significant.

Key Takeaways

• PPI August dropped: “Expected to be up 3 tenths. No, no, no. Down one tenth of a percent. Wow. That would be the first negative number since April.”
• Year-over-year: “Two point six on year over year headline. That’s that we are expecting three point three … underscores whether it was tariff driven or not. Those little blips seem to be moving back into the sunset.”
• Secretary of War Pete Hegseth: “We’re gonna put America First. In this case, the Americas first — our hemisphere — secure our homeland. We’re not gonna sit back and watch the American people be threatened.”
• Wells Fargo CEO Charlie Scharf: “In our own data, things are remarkably stable … Consumer credit is as good as it’s been in the last six months. In fact, it’s probably trending a touch better. Companies are in really great shape.”
• Scharf’s summary: “Things actually feel very good today, certainly relative to what you think they could be.”