#CPIWatch Bottom-line: U.S. headline inflation is holding at a still-elevated 3 % year-over-year, suggesting the Fed will keep policy “higher-for-longer” and keeping short-term yields bid. 📈🔍What the latest CPI data is telling us• The most recent reading for the U.S. Consumer Price Index (CPI) on a month-over-year basis sits at 3 % as of September 20251. 📊U.S.: CPI: Month-on-year, U.S.: CPI: Seasonal Adjustment: Month-on-year单位• During the “Face the Nation” interview on 14 Dec 2025, National Economic Council Director Kevin Hassett reiterated that “the latest data, though, from the Consumer Price Index is up three percent year over year,” underscoring that the 3 % print is not a one-off blip2. 🗣️Why it matters for traders & investorsRate expectations: A 3 % headline rate is comfortably above the Fed’s 2 % target, limiting the odds of near-term rate cuts and supporting higher-for-longer rate narratives. This typically keeps Treasury yields firm and can compress duration-sensitive equity multiples. 💵Sector rotation: Sectors with pricing power (e.g., select healthcare, select financials) may outperform as they can pass through higher input costs, while margin-sensitive industries face pressure. 🏥🏦Leveraged loan appeal: With yields steady and credit spreads tight, floating-rate assets such as leveraged loans remain attractive. PGIM Floating Rate Income Fund, for example, is maintaining a 6.5 % total-return forecast for 2025 on the back of robust CLO issuance and limited new supply3. 📈💡Actionable takeaways for a short-term trader• Stay rate-aware: Expect volatility around Fed-related headlines; consider shorter-duration bonds or bond ETFs to manage interest-rate risk. ⏳• Watch credit spreads: If spreads stay tight despite higher rates, leveraged-loan or high-yield bond ETFs could offer carry benefits. 🏗️• Sector tactically: Favor defensive or pricing-power themes in equities until CPI shows a clear, sustained move toward 2 %. #CPIWatch