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Producer Price Index (PPI) Graphic

Producer Price Index (PPI) Graphic

The Producer Price Index (PPI) in May showed inflation at the wholesale level was unchanged at 0.0% in May and increased 2.4% on a yearly basis. The Labor Department index via the Bureau of Labor Statistics (BLS) showed final demand prices for services rose 0.3% but for goods fell 0.5%.

The median economist forecast called for a 0.1% gain.

Excluding food and energy, the so-called core PPI rose at a higher-than-expected 0.3%. Energy prices declined 3.0% and food down 0.2%. The closely-watched trade services component up 1.1% after two months of declines.

The PPI is a gauge that looks at prices businesses receive from customers, to include consumers, governments and other businesses. Price changes in the index don’t necessarily directly impact what consumers will pay for goods. Regardless, the PPI historically is generally in line (trend-wise) with other major inflation indexes.

Still, despite inflation missing their targets, a rate hike at the conclusion of the Federal Reserve Open Market Committee’s (FOMC) two-day policy meeting on Wednesday is all but certain. The Fed will no doubt cite the unemployment rate falling to a 16-year low last month.

The Producer Price Index (PPI) in May

President Donald Trump, second from left, with Vice President Mike Pence, left, shakes hands with Senate Majority Leader Mitch McConnell, R-Kty., center, before the start of a meeting with House and Senate leaders at the White House. (Photo: AP)

President Donald Trump, second from left, with Vice President Mike Pence, left, shakes hands with Senate Majority Leader Mitch McConnell, R-Kty., center, before the start of a meeting with House and Senate leaders at the White House. (Photo: AP)

With the July 4 deadline approaching, Republican senators on the working group will give President Donald Trump a new health care bill to review on Tuesday. Majority Leader Mitch McConnell, R-Kty., imposed the deadline to vote on a bill after Republican leaders met with the President at the White House last week to discuss his legislative agenda for the remainder of the year.

Congressional sources tell People’s Pundit Daily Leader McConnell and working group members, including Sens. Mike Lee, R-Utah, Orin Hatch, R-Utah, and Lamar Alexander, R-Tenn.–will hand the proposal to the president in draft form subject to changes if necessary.

While the White House has taken unprecedented action to move President Trump’s agenda forward, the Republican-controlled Congress has struggled to find its governing footing.

The House passed the American Health Care Act (AHCA) on May 4 after weeks of negotiations and direct presidential involvement. But Leader McConnell established working committees to basically start all over.

President Donald Trump, center, gestures during a meeting with House and Senate Leadership in the Roosevelt Room of the White House in Washington, Tuesday, June 6, 2017. With Trump are from left, Senate Majority Leader Mitch McConnell of Ky., House Speaker Paul Ryan of Wis., and Senate Majority Whip John Cornyn of Texas. (Photo: AP)

President Donald Trump, center, gestures during a meeting with House and Senate Leadership in the Roosevelt Room of the White House in Washington, Tuesday, June 6, 2017. With Trump are from left, Senate Majority Leader Mitch McConnell of Ky., House Speaker Paul Ryan of Wis., and Senate Majority Whip John Cornyn of Texas. (Photo: AP)

Meanwhile, individual insurance markets in Virginia, West Virginia, Iowa, Nebraska and other states have either collapsed or on the verge of collapsing under the weight of insolvency created by ObamaCare, the Affordable Care Act (ACA). In an effort to project urgency, President Trump visited middle America last week joined by two families—one from Dayton, Ohio, and another from Louisville, Kentucky—who have suffered as a result of ObamaCare regulations, cost increases and penalties.

“Thank you for being here and sharing your stories today and giving voice to millions and millions and millions of Americans who are going through turmoil right now. Absolute turmoil,” he said. “Health care is about so much more than dollars and cents. It’s about real people.”

The President also made clear to Republican leaders that he wants to sign tax reform by the fall, which is widely expected to significantly boost economic growth. While the jobs and labor market have gained steam, the U.S. economy, poised to explode, is being hindered by uncertainty caused by congressional inaction.

As People’s Pundit Daily previously reported, Senate Republicans are also weighing the option to combine health care reform and tax cuts into one bill. The plan is an effort by a slow-to-act Congress to expedite the passage of President Trump’s legislative agenda.

Meanwhile, sources say that the draft proposal will be completed by Monday night, though the timing of the meeting will depend on the President’s schedule. President Trump is slated to give a major speech on health care Tuesday afternoon in Milwaukee, Wisconsin.

With the July 4 deadline approaching, GOP

As FBI director, Robert Mueller speaks before the Senate Judiciary Committee on June 19, 2013. (Photo: Reuters)

As FBI director, Robert Mueller speaks before the Senate Judiciary Committee on June 19, 2013. (Photo: Reuters)

In light of James Comey’s testimony to the Senate Intelligence Committee on Thursday, there are growing calls for Special Counsel Robert Mueller to step aside. The fired FBI director admitted to leaking documents with the explicit aim to force the appointment of a special counsel.

Mr. Comey further claimed he decided to do so only after President Donald Trump tweeted he may have tapes of their conversations. However, the tweet was sent out after Comey-specific and related leaks appeared in media reports, casting doubt on the former director’s claims. He also admitted that the President was not under investigation for alleged “collusion” and indeed was assured he was not.

Following these revelations, the PPD editorial board called on Deputy Attorney General Rod Rosenstein to dissolve the special counsel. That call has been mirrored by others and there is a growing chorus calling on Mr. Mueller–Mr. Comey’s friend, mentor, and predecessor–to at least step aside.

With Mr. Comey volunteering himself as the star witness, Justice Department (DOJ) ethics policies prohibit Mr. Mueller from serving as Special Counsel.

According to Section II(c) of the DOJ Government Ethics Outline:

No DOJ employee may participate in a criminal investigation or prosecution if he has a personal or political relationship with any person or organization substantially involved in the conduct that is the subject of the investigation or prosecution, or who would be directly affected by the outcome.

If that’s not clear enough, the law governing the special counsel (28 CFR 600.7) specifically prohibits Mr. Mueller (or anyone for that matter) from serving if he has a “conflict of interest.” Even the appearance of a conflict is prohibited.

28 USC Section 528 requires “the disqualification of any officer or employee of the Department of Justice, including a United States attorney or a member of such attorney’s staff, from participation in a particular investigation or prosecution if such participation may result in a personal, financial, or political conflict of interest, or the appearance thereof.”

“Such rules and regulations may provide that a willful violation of any provision thereof shall result in removal from office.”

It is well-established that Mr. Comey and Mr. Mueller have a close professional and personal relationship. In 2013, The Washingtonian detailed that close professional and personal history in Forged Under Fire—Bob Mueller and Jim Comey’s Unusual Friendship.

That dramatic week had united the two men—both career public servants—deepening a friendship forged in the crucible of the highest levels of the national security apparatus after the 9/11 attacks.

Further, Mr. Comey “closely coordinated” his testimony before the Senate Intelligence Committee with Mr. Mueller and testified that he was permitted to review his memos in preparation of his written opening statement.

A “personal relationship” is defined in the ethics outline to mean “a close and substantial connection of the type normally viewed as likely to induce partiality.”

Who is responsible for policing ethics violations?

“If Mueller refuses to do his duty and recuse from Comey-related matters, or resign in general, then it is the duty of the deputy attorney general to terminate Mueller as special counsel,” criminal and constitutional law attorney Robert Barnes said in a comment.

Translation: In the event Mr. Mueller does not do the right thing voluntarily, the decision falls to Deputy Attorney General Rosenstein, the man who appointed him to begin with. Mr. Barnes, who is a columnist for LawNewz.com, also suggested Mr. Mueller recuse himself from investigating issues surrounding his friend of “more than a decade.”

“How can Mueller believe anyone will see his actions as impartial when it requires reviewing all matters of credibility concerning Comey, including possible criminal charge consequences for Comey, when Mueller has been identified as friends of a ‘unique’ ‘deep’ and ‘close’ kind with Comey for more than ‘a decade’?

Mr. Barnes did state President Trump could force Mueller to step aside, but such a decision would no doubt draw substantial political fire.

With James Comey volunteering himself as the

President Donald Trump speaks during a cabinet meeting, Monday, June 12, 2017, in the Cabinet Room of the White House in Washington. (Photo: AP)

President Donald Trump speaks during a cabinet meeting, Monday, June 12, 2017, in the Cabinet Room of the White House in Washington. (Photo: AP)

President Donald J. Trump held his first full Cabinet meeting nearly two months after Barack Obama did, vowing to “return power to the people.” The President asked each secretary and agency head to briefly talk about what they are working on and what they’ve achieved thus far.

Senate Democrats, led by Minority Leader Chuck Schumer, D-N.Y., sought to block or delay nearly all of the President’s choices for each agency position. For reference, his predecessor, Mr. Obama, held his first full Cabinet meeting on April 20, 2009.

While Republicans had strong objections to several of the individuals Mr. Obama chose, they kept with long-standing Senate tradition. Not Democrats.

“We now have our Cabinet finally approved,” President Trump said at the White House, finally surrounded by his full team . “We’re here to change Washington, return power to the people, and we’re here to give people a great shot at a great, great job.”

He hosted Republican congressional leaders of a slow-to-act Congress last week to expedite the passage of his legislative agenda for the remainder of the year. Last week, he also introduced his plan to modernize the nation’s infrastructure, which Sen. Schumer and other Democrats had supported before they decided to block all things Trump.

“We will have zero backing from the Democrats,” President Trump added. “If we had the greatest bill in the history of the world, we wouldn’t get one vote from the Democrats. That’s their game. They’re obstructionist, and that’s sad.”

Trivia

Bill Clinton, who was known for starting his day very late in the morning, only held six full Cabinet meetings during his first year. John F. Kennedy held 14 full Cabinet meetings.

President Donald J. Trump held his first

In this April 28, 2017 file photo, Attorney General Jeff Sessions speaks in Central Islip, New York. (Photo: AP)

In this April 28, 2017 file photo, Attorney General Jeff Sessions speaks in Central Islip, New York. (Photo: AP)

Attorney General Jeff Sessions requested a public hearing before the Senate Intelligence Committee on Tuesday, according to the Justice Department (DOJ). The committee, which is leading the congressional probe into Russian interference in the 2016 presidential election, announced the appearance Monday morning scheduled for 2:30 PM.

“The Attorney General has requested that this hearing be public. He believes it is important for the American people to hear the truth directly from him and looks forward to answering the committee’s questions tomorrow,” the statement read.

Sessions’s testimony comes just days after fired FBI Director James Comey told lawmakers that he knew details that made Session’s involvement in the bureau’s Russia probe “problematic.” In his testimony, he also stated that he was “not aware of any kind of memorandum issued from the Attorney General or the Department of Justice to the FBI outlining the parameters of recusal.”

However, the Justice Department produced an email from the Attorney General’s Chief of Staff dated March 2, 2017, which was addressed to the former director and other relevant DOJ officials. It informed Mr. Comey and of the recusal and its parameters, specifically advising them to instruct their staff “not to brief the Attorney General about, or otherwise involve the Attorney General in, any such matters described.”

It is not the first time DOJ has had to correct or contradict Mr. Comey.

Attorney General Jeff Sessions requested a public

General Electric (NYSE:GE) CEO, Chief Executive Officer, Jeff Immelt talks in Boston, Mass. (Photo: Reuters)

General Electric (NYSE:GE) CEO, Chief Executive Officer, Jeff Immelt talks in Boston, Mass. (Photo: Reuters)

General Electric (NYSE:GE) said Monday Jeffrey Immelt is stepping down as chief executive officer, ending a controversial 16-year term. The former economic advisor to Barack Obama, who made controversial decisions to move the company away from its industrial roots and led acquisitions, will be replaced by John Flannery.

Mr. Flannery, 55, the president and chief executive of GE Healthcare, will take over a company struggling to increase profitability on August 1. Mr. Immelt, 61, will remain as chairman until he retires on December 31. Mr. Flannery will take over the role of chairman on January 1.

“During this time of dynamic global markets and relentless focus on technology and operational excellence, there is no better person to lead G.E. than John Flannery,” Jack Brennan, the company’s lead independent director, said in a news release. “He brings unique experience and a strong skill set to the job.”

Mr. Immelt took over for Jack Welch, the legendary chairman and chief executive of GE, who stepped down right before the September 11, 2001 terrorist attacks.

“John is the right person to lead GE today. He has broad experience across multiple businesses, cycles and geographies. He has a track record of success and led one of our most essential businesses,” Mr. Immelt said in a statement. “Most important are his strong leadership traits – good judgment, resilience, a learner, team builder and a tough-minded individual and competitor. He will be trusted by investors, our customers and the GE team.”

GE also said that Jeff Bornstein, its chief financial officer, would be promoted to vice chairman. The company said its board has overseen a succession planning process since 2011.

The stock rose on the news. To put it bluntly, his leadership lost the confidence of the shareholders and explanations for his shortcomings have been ripe with one excuse after another. In March, GE said that it would focus on reducing costs in its industrial business as it faced mounting pressure to do so from Trian Fund Management, which is run by the billionaire investor Nelson Peltz.

Trian took a big stake in GE nearly two years ago.

General Electric (NYSE:GE) said Monday Jeffrey Immelt is

Julius Caesar at Free Shakespeare in the Park (Photo: SS)

Julius Caesar at Free Shakespeare in the Park (Photo: SS)

Sponsoring companies are pulling their support of Shakespeare in the Park after portraying the assassination of Julius Caesar as President Donald Trump. Delta Air Lines and Bank of America were the first companies to announce that they are pulling their sponsorships of a Manhattan-based theater on Sunday.

“No matter what your political stance may be, the graphic staging of Julius Caesar at this summer’s Free Shakespeare in the Park does not reflect Delta Air Lines’ values,” the company’s statement said. “Their artistic and creative direction crossed the line on the standards of good taste.”

Bank of America soon followed, withdrawing their financial support for the production company.

“The Public Theater chose to present Julius Caesar in such a way that was intended to provoke and offend,” the bank said in a tweet. “Had this intention been made known to us, we would have decided not to sponsor it.”

Performances at Central Park’s Delacorte Theater began just days before now-fired New Year’s Eve CNN host and comedian Kathy Griffin posed for a photograph with a bloodied rendering of President Trump’s severed head.

Oskar Eustis, the Public Theater’s artistic director who also directed the play, said earlier in a statement that “anyone seeing our production of ‘Julius Caesar’ will realize it in no way advocates violence towards anyone.”

“Julius Caesar” tells a fictionalized story of a powerful, popular Roman leader who is assassinated by senators who fear he is becoming a tyrant. It is set in ancient Rome, but many productions have costumed the characters in modern dress to give it a present-day connection.

Sponsoring companies are pulling their support of

Senate Judiciary Committee member Sen. Lindsey Graham, R-S.C., questions Supreme Court Justice nominee Neil Gorsuch during the committee’s confirmation hearing on Capitol Hill in Washington on March 21, 2017. (Photo: AP)

Senate Judiciary Committee member Sen. Lindsey Graham, R-S.C., questions Supreme Court Justice nominee Neil Gorsuch during the committee’s confirmation hearing on Capitol Hill in Washington on March 21, 2017. (Photo: AP)

Sen. Lindsey Graham, R-S.C., said on Sunday former Attorney General Loretta Lynch should testify before the Senate over possible obstruction. Fired former FBI Director James Comey testified before the Senate Intelligence Committee that Lynch directed him to call the Hillary Clinton email probe a “matter,” not an investigation, which he alleged made him “queasy.”

“I want to hear from Loretta Lynch,” Sen. Graham said in response on Sunday. When asked Sunday on CBS News’ “Face the Nation” whether he now wants Lynch to appear before the judiciary committee on which he sits, Sen. Graham said: “Absolutely.”

Comey said this led him to end-run the Justice Department on the case, as well as a secret meeting on a tarmac at Phoenix Sky Harbor International Airport between Bill Clinton and then-Attorney General Lynch.

“It gave me the impression the attorney general was willing to align the way we talk with a political campaign,” Mr. Comey said. “That gave me a very queazy feeling.”

The testimony confirms a critical piece of information in an exclusive inside look at the Clinton email probe reported by People’s Pundit Daily on On May 11. However, it isn’t the only reason Mr. Comey decided to end the case his agents were still working on.

Sen. Dianne Feinstein, D-Calif., the Ranking Member of the Senate Judiciary Committee, said Sunday on CNN’s “State of the Union” that she would have had a “queasy feeling, too.” She agreed lawmakers need to “take a look” at it.

Rep. Peter King, R-N.Y., a notable member of the House Intelligence Committee, also said on Sunday he wants to see whether Comey kept any notes regarding conversations with Lynch. The committee has already asked Mr. Comey whether he kept notes on Lynch, which he claims not to have done for Barack Obama. Only President Donald Trump.

“I want to see if he had any memos on Loretta Lynch,” King said on Fox News’ “Sunday Morning Futures with Maria Bartiromo.”

Meanwhile, Senate Minority Leader Chuck Schumer, D-N.Y., who called for President Trump to testify on his meetings with Comey, said he hasn’t heard Lynch’s side of the story and cannot say “whether it rises to the level that she should come and testify.”

“All I’m saying with Loretta Lynch is before anyone jumps to any conclusions, we ought to hear what she has to say,” he said on “Face the Nation.” “And let her state something privately and see if it makes much of a difference. I don’t know that it will.”

Sen. Lindsey Graham, R-S.C., said on Sunday

Republican presidential candidate Donald Trump arrives to a rally, Wednesday, Sept. 14, 2016, in Canton, Ohio. (Photo: AP)

Republican presidential candidate Donald Trump arrives to a rally, Wednesday, Sept. 14, 2016, in Canton, Ohio. (Photo: AP)

President Donald J. Trump was in Ohio last week to gin up support in Middle America for his plan to modernize the nation’s infrastructure. The President, who overwhelmingly carried the Buckeye State, said it was “time to rebuild our country” and to “put America first.”

“America must have the best, fastest and most reliable infrastructure anywhere in the world,” President Trump said. “We will fix it,” said Trump, standing along the Ohio River. “We will create the first-class infrastructure our country and our people deserve.”

While his national numbers have taken a dive, the PPD Buckeye State Battleground Poll shows he remains popular in Ohio. PPD Battleground State Likely Voter Profiles show the same is true for most other states the president carried in November.

We think there’s at least an economic reason for this.

The ADP National Employment Report and the Gallup U.S. Job Creation Index show Trump states in the South and Midwest are leading the nation in job creation. A review of private sector job creation data show Trump voters are disproportionately benefiting from the Trump economy.

Let’s start with the Gallup U.S. Job Creation Index, which returned to its record high in May.

In general, the South, a typical vote-rich region for even typical Republicans and, the Midwest, which is not, have led the way in job creation. Meanwhile, the East, a democratic-led and voting stronghold, is lagging far behind Trump country with an average of +31 ( up to May). That compares to +42 in the South and +38 in the Midwest.

“The East has experienced virtually no growth since last fall,” Art Swift of Gallup noted.

That hasn’t always been the case and, even though the East generally tracks lower, the disparity is greater in the last few months as job creation in the South and Midwest grow at a faster rate.

Gallup Job Creation Index Region

Worth noting, while most psephologists refer to Pennsylvania as being part of the Blue Wall in the Rust Belt Midwest, job creation data considers it an eastern state. Pennsylvania voted for President Trump in November, the first time it went Republican since 1988, and also happens to be one of only 3 states adding jobs at a significant rate.

The West, a region that is made up of states that are evenly split–Alaska, Washington, Oregon, California, Arizona, Idaho, etc–averaged +37.

Since President Trump took office, employees in the South and Midwest have been markedly more likely to report net job creation.

The U.S. Job Creation Index results are surprisingly in line with payroll process ADP’s findings.

The ADP National Employment Report found the U.S. private sector added 253,000 jobs in May, of which a staggering 98,000 were created in the South and 46,000 in the Midwest. Florida (+13,500) and Texas (+30,900), both of which being the two most populous states in the South, led their region.

That’s roughly 39% (South) and 18% (Midwest), respectively, the latter being disproportionately smaller in terms of population. Of the 3 states leading the way in the Midwest, only Illinois didn’t vote for President Trump. Ohio and Michigan are the other two.

The ADP National Employment Report and the

Senate Majority Leader Mitch McConnell talks to reporters after the Senate Republican weekly policy luncheon at the Capitol in Washington, July 8, 2015. (Photo: Reuters)

Senate Majority Leader Mitch McConnell talks to reporters after the Senate Republican weekly policy luncheon at the Capitol in Washington, July 8, 2015. (Photo: Reuters)

Senate Republicans are weighing the option to combine health care reform and tax cuts into one bill, congressional sources told People’s Pundit Daily. The plan is an effort by a slow-to-act Congress to expedite the passage of President Donald Trump’s legislative agenda.

President Trump hosted congressional leaders at the White House last Tuesday to discuss that agenda for the remainder of the year. The President put an emphasis on his desire to sign tax reform before the end of the year, and to repeal ObamaCare.

Congressional Republicans also spoke about the plan to repeal Dodd-Frank. On Thursday, the GOP-controlled House voted 233-186 in favor of the Financial Choice Act, sending the bill to the Senate for the upper chamber to tackle.

The House passed the American Health Care Act (AHCA) on May 4 after weeks of negotiations and direct presidential involvement. Then, Majority Leader Mitch McConnell, R-Kty., established working committees to basically start all over.

Meanwhile, individual insurance markets in Virginia, West Virginia, Iowa, Nebraska and other states have either collapsed or on the verge of collapsing under the weight of insolvency created by ObamaCare, the Affordable Care Act (ACA).

Sources tell People’s Pundit Daily that lawmakers involved in the talks last week were infinitely more optimistic about getting both done this year, including health care by the end of the summer. However, the plan to combine the AHCA with tax reform is just one, though it is getting serious attention.

White House legislative affairs director Marc Short told reporters before the meeting that the administration was already working to pitch the idea of a single tax reform package with GOP House and Senate leaders, which lawmakers would take up after Labor Day.

Mr. Short added that the White House is pushing Speaker Paul Ryan, R-Wis, and Leader McConnell to repeal and replace ObamaCare by the end of July, which would provide a big buffer on deficit spending to offset static scoring methods used by the Congressional Budget Office (CBO) to derive cost.

Senate Republicans are weighing the option to

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