The market remains on pins and needles, although, its looking better than last night when after the close reports of China playing hardball sent the Dow off more than 300 points in after hours trading.

I’m already on record saying President Trump will push off higher tariffs scheduled for next week, and delay new tariffs scheduled for December 15.  With the news Trump is meeting China’s Vice Premiere, the stakes are even higher.

CPI lower than expected with these key highlights:

Decreases

• Apparel -0.4
• New auto -0.1
• Used autos -1.6
• Drug prices -0.6
• Alcoholic -0.3

Increases

• Shelter +0.3
• Medical services +0.4
• Food away from home +0.3

Overall, inflation continues to run well below the Fed’s target of 2.0%.  Don’t underestimate the Fed cutting 50 basis points this month.  While all eyes are on trade talks, longer term, the Fed is significantly more important – with the golden money machine capable of putting four billion dollars into society and taking it back.

United States Inflation Rate