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progree

(12,559 posts)

4. But he has tamed inflation: "Stock market today: [market surges] to records as tame inflation cements Fed rate cut bets

Reply to BumRushDaShow (Original post)

Sat Oct 25, 2025, 04:17 PM

Oct 25

Stock market today: Dow, S&P 500, Nasdaq surge to records as tame inflation cements Fed rate cut bets, Rian Howlett, Laura Bratton and Ines Ferré, Yahoo Finance, 10/24/25

The September inflation data released on Friday morning came in cooler than expected. The headline Consumer Price Index rose 3% on an annual basis, the highest level since May but softer than forecasts for a 3.1% gain ((that makes it tame? --progree)). Month-over-month, prices rose 0.3%, a slight cooling from August's reading and also below expectations. ((oh, a 3.7% annualized increase is tame, I guess. That's what 12 months of +0.3%/month increases annualizes to -progree))

I call this cooking the narrative.

I so much hate it when the media compares to expectations rather than addressing where it's actually at. The expectations were really really hot. https://www.democraticunderground.com/?com=view_post&forum=1116&pid=101154

These ((expectations -progree)) annualize to 4.9% and 3.7% respectively ... This would result in the 3-month average of 3.99% annualized for the CPI, and 3.94% annualized for the core CPI.

The actual numbers: Over the last 3 months, both the CPI and the Core CPI have averaged 3.6% inflation at an annualized rate, 1.8 X the Fed's 2% goal. Over 20 years, a 3.6% average annual inflation rate would cut the purchasing power of the dollar in half, meaning one's investments would have to double in order to just stay in place as far as purchasing power, as prices would double.

See graphs at https://www.democraticunderground.com/10143552691#post10