September’s CPI report just flipped the Fed’s rate strategy on its head. Inflation came in softer than expected at 3.0% year-over-year, with monthly prices rising 0.3% — and that was enough to send markets surging. Core CPI, which excludes food and energy, also clocked in at 3.0%, matching the headline number. Gasoline rose 4.1% on the month, but shelter costs — roughly one-third of the CPI — barely budged, up just 0.2%. The softer-than-expected data immediately sent Treasury yields lower and stocks higher, with traders now pricing in a 100% chance of a quarter-point Fed rate cut next week. Another cut in December is now likely on the table. Even though inflation remains above the Fed’s 2% target, this report gives Jerome Powell and policymakers the cover they need to start easing rates while maintaining employment stability. If inflation stays tame, the Fed could be setting up the first true rate-cut cycle since 2020. #CPI #Inflation #FederalReserve 🖥️ Try Benzinga Pro FREE wit...