So far on Wednesday, the stock market was largely ignoring the morning's inflation report because the main CPI reading was as economists expected. But a look deeper into the report spells trouble for a stock market that are going to want the Federal Reserve to keep cutting rates throughout next year to keep fueling the bull market.
However, in recent months, policy makers have focused more on the headline number, saying shelter costs, which have an outsized influence on core CPI, will come down. But core inflation has remained unusually stubborn, suggesting the Fed may have to hold rates higher than investors were previously anticipating. Core CPI showed a third straight monthly increase of 0.3%, bringing the annual rate to 3.3%. "Three months in a row for 0.