🚨 "TOO LATE, POWELL?" – US Inflation Drops Below Expectations!
The fresh January 2026 CPI data just hit the wires, and the numbers tell a very different story than the one coming from the Fed. While officials have been warning of a "heat-up," the actual data shows a clear cooling trend.
📊 The Data Breakdown:
Headline CPI: 2.4% (vs. 2.5% Expected) 📉
Core CPI: 2.5% (vs. 2.5% Expected) ✅
🔍 Key Takeaways:
April 2025 Levels: Headline CPI has now retreated to its lowest level since April 2025—erasing the "inflationary hump" seen during the peak tariff implementation period.
5-Year Milestone: Core CPI (excluding food/energy) is at its lowest annual pace since the 2021 lockdown era.
The Policy Gap: Despite the Fed’s claims that inflation is heating up, the actual trend is moving downward. This mismatch could force a significant pivot in interest rate expectations for the March FOMC meeting.
Market Sentiment: The "higher for longer" narrative is officially under fire. If inflation continues to trend lower while the economy shows signs of slowing, the pressure on Powell to cut rates will become undeniable.
By: Nabiha Noor
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