#CPI&JoblessClaimsWatch

Markets are laser-focused on the latest CPI (Consumer Price Index) and jobless claims data, key signals for where the economy—and Fed policy—are heading next.

CPI: Inflation came in hotter than expected, putting pressure on the Fed's rate cut timeline. Sticky core inflation remains the concern, especially with shelter and services staying elevated.

Jobless Claims: Weekly initial claims showed slight movement, but nothing drastic enough to suggest labor market weakness. The job market remains resilient—good news for the economy, mixed news for the Fed.

Takeaway: The Fed's balancing act continues. With inflation still not fully tamed and employment holding strong, the case for holding rates higher for longer is strengthening. Risk assets may feel the pressure in the short term.

Stay tuned—next month’s data could be the pivot point.