🚨 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.

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