🔥 3.1%! A fatal backlash against core CPI
A fatal 0.2% increase:
▮ 3.1% year-on-year (3.0% expected/2.9% prior)
▮ Marking the end of a 154-day cooling trend in inflation
▮ Housing costs +5.1% + healthcare +4.3% = a two-headed sticky inflation hydra
🎯 The Fed's naked dilemma
Expectation slaughter: The market's bet on a "September rate cut consensus" instantly wiped out $37 billion in interest rate futures positions
Policy slapped in the face: Powell's "controlled inflation theory" shattered into 23 pieces (corresponding to 23 Fed branches) in the face of data
Time trap: With only 83 days until the election, the rate cut arsenal is sealed by the CPI
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