Inflation cools down, but the market is starting to "run a fever"?


Recently, core CPI hit a four-year low, and many people's first reaction was: inflation is finally under control! But the market's reaction is quite nuanced—on one hand cheering, on the other tense, much like a patient whose temperature just dropped but still wants to go out dancing.
Core CPI, essentially, is like a "bare-faced photo" of prices—removing items like food and energy that come with filters to reveal the true inflation baseline. Now that it’s cooling off significantly, it indicates that price pressures are easing. But the problem is—if it drops too smoothly, it raises doubts about whether the economy is hitting the brakes.
For the US economy, too high inflation hurts wallets, while too low inflation damages confidence. When companies see prices aren’t rising, they might hesitate to expand; when consumers see wages aren’t keeping up with expectations, they tighten their belts. So the market is caught in a dilemma: is this good news, or is it too good?
The Federal Reserve is like a parent, happy to see the child finally quiet, but worried if something’s wrong. Cutting rates too early risks reigniting inflation; waiting too long could cool the economy too much. This dilemma is more tangled than choosing a partner in a blind date.
So don’t see the new low in CPI as fireworks; it’s more like a health report—good indicators are positive, but the doctor still looks at the whole picture. What the market truly cares about isn’t how much it’s dropped today, but whether the "low temperature" will persist in the future.
One quick question: if inflation is a thermometer, do you think it’s just right now, or a bit too cold?
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ybaservip
· 5h ago
2026 Go Go Go 👊
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CoinRelyOnUniversalvip
· 5h ago
Good luck and prosperity 🧧
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SpicyHandCoinsvip
· 5h ago
2026 Go Go Go 👊
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