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?(Justin Wu)