Import prices dropped 0.4% MoM vs expectations of +0.1%. Export prices cratered 1.3% vs flat forecast.
This is deflationary pressure showing up in the hard data. Weaker global demand, stronger dollar, or both. Either way, it's not screaming "sticky inflation" anymore.
If this trend holds, Fed's got more room to sit tight or even cut if growth wobbles. Watch how this feeds into core PCE and whether the market starts pricing easier policy again.
This is deflationary pressure showing up in the hard data. Weaker global demand, stronger dollar, or both. Either way, it's not screaming "sticky inflation" anymore.
If this trend holds, Fed's got more room to sit tight or even cut if growth wobbles. Watch how this feeds into core PCE and whether the market starts pricing easier policy again.