Looking back at yesterday's speculation, it turns out Trump being so bold to escalate the situation this week without a TACO really might be because the CPI data was good enough. Core 0.0% is the smallest since January 2021. If interest rate policy is based on this kind of data, then the recent comments from Fed voting members can be interpreted as paving the way to lower rate hike expectations and strengthen rate cut expectations. If low inflation can be maintained for two or three months, there’s actually enough time for a rate cut before the midterm elections in November.