#CPI&JoblessClaimsWatch That's a solid summary. Here's a breakdown of what this likely means for markets, interest rates, and the Fed's next move:

Markets:

Stocks: Markets tend to like cooling inflation + steady labor data — it's a "Goldilocks" scenario (not too hot, not too cold). This could boost equities, especially growth stocks, since cooling inflation may delay further rate hikes or even open the door to cuts.

Bonds: A slight drop in CPI could spark demand for Treasuries, pushing yields lower. However, sticky core inflation may keep the bond market cautious about how soon or how aggressively the Fed eases.

Interest Rates:

Cooling headline inflation (2.4% YoY) is progress, but the Fed watches core CPI (2.8%) more closely. That number needs to keep drifting down before rate cuts become likely.

The Fed is unlikely to raise rates again unless core inflation surprises to the upside.

First rate cut could be on the table mid-to-late 2025 if inflation continues to trend down and the labor market stays stable.

The Fed's Next Move:

No hike expected, status quo remains.

They’ll likely stay in “wait-and-see” mode — data-dependent, with a hawkish bias just in case.

Fed will highlight the sticky core inflation in their messaging, even if the market starts pricing in cuts.

Want me to add how this might affect sectors like tech, real estate, or consumer stocks?