Inflation is Hot Again

The Fed’s worst nightmare just came true. Yesterday’s CPI inflation report was a wake-up call, and it’s something we all need to pay attention to. Here’s the breakdown:

🔥 What Happened?

• Headline CPI inflation jumped to 3.0% , above expectations of 2.9%.

• Core CPI inflation (which excludes food and energy) rose to 3.3% , surpassing forecasts of 3.1%.

• This marks the 4th straight month of rising inflation—and it’s accelerating.

📊 The Numbers That Matter

• Headline CPI surged +0.5% in one month , the largest increase since August 2023.

• Core CPI inflation didn’t fall as expected—it rose by +0.4% , doubling December’s +0.2% increase.

• US consumers’ 12-month inflation expectations are now at 4.3% , the highest since November 2023.

🚨 Why This Is a Big Deal

This is the hottest inflation report we’ve seen since 2023. The data shows inflation isn’t just sticking around—it’s picking up steam. And here’s the kicker: this report doesn’t even reflect the full impact of new tariffs on China and other countries. Those could push prices even higher in the coming months.

📈 What It Means for Markets & Rates

The market is already reacting:

• Instead of multiple rate cuts this year, traders now expect only ONE rate cut in October 2025 .

• After that? No more cuts until December 2026 (look at the blue portions)
  In short, higher rates are here to stay for the foreseeable future.

🙅 Market Didn’t Like It

• Dow Jones Industrial Average : Fell 0.7%.

• S&P 500 : Dropped 0.5%.

• Nasdaq Composite : Dipped 0.3%.

• 10-Year Treasury Yield : Jumped to 4.66%

💡 What Should You Do?

Inflation impacts everything—from your grocery bills to your mortgage payments, investments, and savings. Here’s what you can do:

1️⃣ Review Your Investments : Ensure your portfolio is positioned to weather inflation and potentially benefit from it. (We have started adjusting our portfolio to more inflationary stocks in the Stock Market Genius community)
2️⃣ Optimize Your Mortgage : With rates likely staying higher for longer, now’s the time to lock in better terms if possible. (More on this below!)
3️⃣ Protect Your Purchasing Power : Consider assets like real estate, dividend-paying stocks, or inflation-hedging strategies to safeguard your wealth.

🎯 Exclusive Opportunity for You

If you’re unsure how inflation and higher rates might affect your financial plans, I’ve got good news. My friend Ethan, a top mortgage broker, is offering FREE consultations to help you review your mortgage and explore ways to save.

👉 Secure Your FREE Consultation Now: https://rebrand.ly/unbeatableloans

This is a limited-time offer, so don’t wait! Even if you’re confident in your current setup, it’s always smart to double-check—you might be surprised by how much you could save.

Personally, I am shifting to a 2.45% for 3 year lock-in for a peace of mind. That will help me save almost $1000 in monthly mortgage!

Stay ahead of the curve, and let’s navigate this inflationary environment together. If you have questions or want to discuss how this impacts your personal finances, feel free to reply—I’m here to help.

Happy Hunting!

Pete
Invest with Pete

🚨‼️ By the way, I’ll never PM anyone on telegram or any other social media platforms. If you receive any “Pete” messaging you, these are scammers impersonating me. Pls beware!

The information provided in this newsletter is for informational purposes only and does not constitute financial advice. Readers should seek their own independent financial advice before making any investment decisions. Please note that while Pete is a portfolio manager, the opinions expressed in this newsletter are his own and do not represent the views of any organization. Always perform your own research and due diligence before investing.