🗓️ October 25 Update Market Shock Incoming
The Fed just sent shockwaves through the markets!
U.S. inflation data came in lower than expected — and now, traders are betting on another rate cut next week.
Here’s the breakdown 👇
📉 Headline CPI (YoY): 3.0%
📉 Core CPI (YoY): 3.0%
➡️ Both 0.1% lower than forecasts.
🏠 Rent growth slowed sharply owners’ equivalent rent rose only 0.1%, pulling inflation down further.
👕 Tariffs had limited impact: clothing +0.7%, new cars +0.2%, but used cars and medical costs fell.
With inflation cooling, the Fed is shifting focus from inflation control to protecting jobs.
Powell hinted the job market is weakening this cut is a “preventive strike” to support employment before it worsens.
💹 Market Reaction:
📈 Nasdaq hits new record highs
🥇 Gold prices climb
💵 Dollar slips as investors brace for a softer Fed
But not everyone’s celebrating…
Analysts warn the U.S. tariff rate may hit 17%, which could reignite inflation later this year.
To make things trickier a government shutdown might delay next month’s CPI report, leaving the Fed flying blind.
🧠 In short:
The Fed’s move is like “fixing the roof before the rain.”
They’re cutting rates not because the crisis is here but because it might be coming. 🌧️
#FederalReserve #RateCut #cpi #JeromePowell #USMarkets #GOLD #Stocks #CryptoNews
