Inflation again comes in under expectations.

Perhaps all of these naysayers disguised as economic pundits didn't really understand tariffs as well as they thought they did.

Excluding food and energy, the core CPI came in respectively at 0.1% and 2.8%, compared with forecasts for 0.3% and 2.9%. Federal Reserve officials consider core a better measure of long-term trends, with several expressing concerns recently over the impact that tariffs would have on inflation.

Now there is the very strong possibility that without these tariffs that inflation would be even lower than it. The overall core inflation number at 2.4% which is fairly close to the goal. While the 2.4% is still higher than the 2% goal, the 0.1% reflects an annual inflation much lower if things continue down this same path. The question is whether or not the Fed will actually concede any of this and lower rates (something they are loath to do when Republicans are in charge). One could only imagine the economic surge we would see if the Feds actually cut rates in the next few months.