What's Happening?
CNBC senior economics reporter Steve Liesman, who previously criticized President Trump's tariff policies for potentially increasing inflation, expressed surprise at the latest consumer price index (CPI) report. The report showed a year-over-year increase of 2.7% in November, down from 3.0% in September, with core CPI also easing to 2.6%. Liesman, who had called Trump's tariff strategy 'insane,' noted the unexpectedly low inflation figures during a live broadcast. Harvard economist Ken Rogoff also expressed surprise at the numbers, which were lower than anticipated.
Why It's Important?
The lower-than-expected inflation figures could have significant implications for U.S. economic policy and markets. Lower inflation may lead to expectations of interest rate cuts,
which could benefit investors and the broader economy. The report challenges the narrative that Trump's tariffs would necessarily lead to higher inflation, potentially influencing future policy discussions and economic strategies. Investors and policymakers will likely reassess their positions based on these new data points.
