US consumer inflation ticked up to a 3.0% year-over-year rate in September, the highest rate since January. Core CPI held steady at 3.0%. “The immediate dangers from Trump 2.0 tariff policies have not yet fed through to inflation overall,” wrote Christopher Rupkey, chief economist at FwdBonds. “The market will likely hold their applause, however, as one reason inflation is held in check may be due to the economic slowdown seen in many labor market indicators.” Eric Gerster, chief investment officer at AlphaCore Wealth Advisory, said the CPI report “certainly clears the way for the Fed to cut rates next week as they were going to anyway. It certainly leads to a higher expectation of at least two more rate cuts by March.”
