🚨 Powell Under Pressure After Fresh CPI Data
The new inflation numbers just dropped and they’re shaking the narrative.
CPI came in at 2.4% vs. 2.5% expected. Core CPI matched expectations at 2.5%. That might look small… but it’s important.
Inflation is now at its lowest level since April 2025. Core inflation is at a level we haven’t seen in nearly five years. 📉
While the Fed has been warning about sticky inflation, the data says price pressure is cooling. Fast.
At the same time:
⚠️ Labor market momentum is fading
💳 Credit card delinquencies are rising
🏢 Corporate bankruptcies are climbing
This creates a dangerous setup.
If inflation keeps dropping while the economy weakens, the risk shifts from inflation to deflation. And that’s much harder to fix.
Some are even pointing back to comments from Donald Trump calling Powell “too late.” What once sounded political now feels like a serious policy debate.
The big question now:
Will the Fed pivot soon… or has it already waited too long? 👀📊