🔥 RED ALERT: CPI Hits 2.7% – Market's Rate Cut Dreams Shattered!

Yesterday CPI data just came in hot at 2.7%, sending shockwaves through the market. Everyone had been banking on a potential rate cut, but this unexpected inflation print just flipped the script.

The market was pricing in cooling inflation and had high hopes that the Fed might pivot towards easing soon. But with CPI coming in stronger than expected, it’s clear inflation is still sticky — and that could keep interest rates higher for longer.

This data point is a big blow to the “rate cut” narrative. Investors who were betting on a dovish Fed are now scrambling to reassess their positions. Fed Chair Jerome Powell has been consistent about needing stronger signs of price stability, and this report just gave the Fed another reason to stay hawkish.

We’re now entering a critical zone where every economic release could shake market sentiment. If inflation doesn’t cool down soon, the Fed may not only delay cuts — they might even hint at staying higher-for-longer well into 2025.

Bottom Line: The 2.7% CPI print just threw cold water on any short-term rate cut hopes. Volatility ahead. Stay alert.