🚨 INFLATION COOLING, BUT POWELL WARNS DATA STILL UNRELIABLE — FED ON HOLD 🚨
U.S. inflation unexpectedly slowed to 2.7% in November, below expectations and closer to the Fed’s 2% target — good news for markets. However, Powell and Fed officials are cautious: data may be skewed due to delayed reporting from the government shutdown, and the Fed is not yet ready to guarantee future rate cuts.
Powell has repeatedly warned against over-interpreting short-term inflation dips and emphasized the need for consistent, accurate data before moving aggressively on rates.
📉 Market impact:
• Traders are dialing back expectations for early 2026 rate cuts.
• Powell’s cautious tone means markets may stay volatile as data evolves.
• Assets tied to rate expectations — bonds, growth stocks, crypto — could see sharp repricing based on incoming inflation and jobs numbers.
📌 Investor takeaways:
✔ Don’t assume rate cuts are coming just because inflation temporarily eased.
✔ Watch for revisions or volatility in inflation data — Powell is clearly data-driven.
✔ Plan for scenarios where the Fed holds steady or acts slowly in 2026. $BNB
