📉 #USCoreCPIHitsFourYearLow

U.S. Core CPI has dropped to its lowest level in four years — and this isn’t just another inflation headline.
Core CPI (excluding food & energy) is the Federal Reserve’s key measure of underlying inflation.
Now it’s signaling something important:
🔥 Inflation momentum is cooling.
💡 Why This Matters
When Core CPI trends lower: • Pressure on the Fed decreases
• Rate cut expectations increase
• Bond yields may decline
• The U.S. dollar can soften
• Stocks & crypto often benefit
Markets don’t just react to inflation — they react to liquidity expectations.
Lower inflation → Possible monetary easing → More liquidity → Risk-on sentiment 📈
🏦 Federal Reserve Angle
If disinflation continues: ✔ Rate cuts become more realistic
✔ Financial conditions ease
✔ Risk appetite improves
But remember:
The Fed wants sustainable 2% inflation, not just one soft report.
Trend confirmation is key.
⚠️ Risks to Watch
• Sticky services inflation
• Wage growth pressure
• Geopolitical shocks
• Policy surprises
🧠 Strategic Takeaway
Macro sentiment is shifting toward a risk-on bias —
but smart traders wait for confirmation, not just headlines.