#USCoreCPIHitsFour-YearLow US Core CPI just printed a four-year low.
At first glance, that’s a clear disinflation signal.
But markets don’t react to numbers — they react to expectations.
A lower core CPI suggests:
• Inflation pressure is easing
• The Fed may gain room to pivot
• Rate cut probabilities could rise
• Liquidity expectations may improve
That’s typically supportive for risk assets.
But here’s the nuance:
📌 Is this a sustained trend or a one-off drop?
📌 How does services inflation look beneath the surface?
📌 What happens to bond yields and the dollar next?
If yields fall and the