#CPI&JoblessClaimsWatch

Today’s CPI and jobless claims data are once again in the spotlight, shaping market sentiment and fueling speculation around the Fed’s next move. A higher-than-expected CPI print reinforces concerns about persistent inflation, reminding us that the path to price stability is far from over. Sticky core inflation, especially in services, suggests that the Fed may need to hold rates higher for longer. On the other hand, the jobless claims data adds another layer of complexity. A slight uptick could indicate some cooling in the labor market, but overall claims remain historically low, pointing to ongoing resilience in employment. This divergence—elevated inflation alongside a still-strong labor market—puts the Fed in a tricky position. Investors should brace for continued volatility as markets adjust to the evolving macro landscape.