🚨 U.S. CPI just dropped.
And the Fed's rate cut narrative just took a hit.
Headline CPI: 3.8% met forecast, but jumped hard from 3.3% last month.
Core CPI: 2.8% came in HOT, beating the 2.7% forecast.
Let's be clear about what this means.
Inflation isn't cooling.
It's re-accelerating.
The Fed's 2% target? Still miles away.
Rate cuts in 2026? Just got a lot harder to justify.
And markets hate uncertainty more than they hate bad news.
Bonds reprice. Dollar strengthens. Risk assets feel the pressure.
Every trader who front-ran summer rate cuts is now doing the math.
This is the second consecutive month of rising CPI.
One month is noise.
Two months is a trend.
Three months is a crisis.
The Fed is trapped cut too early and inflation runs. Hold too long and the economy cracks.
There is no clean exit from this.
Watch Powell's next move like your portfolio depends on it.
Because it does.
#CPI #Inflation #Fed #Macro #Markets