CPI came in at 2.4% which was below expectations

Core CPI at 2.5%
That’s lowest inflation print we’ve seen in a long time and yet the Federal Reserve is still acting like inflation is about to re-accelerate
I don’t get it
Inflation is clearly trending down
But look at what’s happening on the other side of economy
- Labor market is slowing
- Credit card delinquencies are rising
- Corporate bankruptcies are climbing back to 2008-type levels
- Consumers are exhausted
This is exactly how policy mistakes happen
In 2020–21 they stayed too dovish for too long and inflation exploded now it feels like they’ve stayed restrictive for too long while growth is breaking underneath
That’s dangerous tbh
Because once demand cracks, you don’t get controlled cooling
You get recession maybe even deflation pressure
And that’s much harder to fix
I’m not even looking at this politically but when people say Jerome Powell is late again, I can see why that narrative is growing
data is speaking everything and it doesn’t look strong imo
What do you say?