Great NEWS!!!  The number everyone was waiting for just dropped.

Inflation came in at 2.4% — below the 2.5% forecast, down from 2.7% last month, and the lowest reading since May 2025.

This changes everything.

For months, Wall Street has been debating whether we’re heading for a soft landing or stagflation. Weak economy + sticky inflation = disaster. Cooling economy + cooling inflation = goldilocks.

Friday the 13th just delivered the answer: We’re getting the soft landing.

What This Actually Means

Here’s the simplest way to understand what just happened:

The Fed has been stuck. They want to cut interest rates to support the economy, but they’ve been worried about reigniting inflation. Cut too soon, and prices spike again. Wait too long, and you trigger a recession.

Today’s report gave them permission to act.

Inflation is cooling. Energy prices crashed. Gas is down 7.5% from a year ago — you’re seeing that at the pump. Core inflation (the number the Fed really cares about) dropped to 2.5%, the lowest since March 2021.

Translation: The inflation fight is won. The Fed can start cutting rates without risking another price surge.

The Tariff Question Everyone Got Wrong

Remember all the warnings about tariffs spiking prices in January?

Companies supposedly ran out of their pre-tariff inventory. Firms were going to reset prices with the new year. Retailers kept sayingthey couldn’t absorb costs forever.

It didn’t happen.

Either companies are still eating the costs (protecting market share over margins), or the tariff impact is way smaller than the doomsday predictions suggested.

Either way, the inflationary explosion everyone feared? Didn’t show up.

Why Wednesday’s Jobs Report Makes This Even Better

Two days ago, we found out the economy added essentially ZERO jobs in 2025 after the benchmark revisions erased 898,000 positions.

At the time, that looked terrible.

But now? It’s perfect.

A weakening labor market + cooling inflation = the exact conditions the Fed needs to justify rate cuts.

Think about it:

• Inflation is under control (2.4%)
• The economy is slowing (zero job growth)
• The Fed has room to ease without worrying about overheating

This is textbook soft landing territory.

What Happens Next

The Fed meets in March. They won’t cut yet — they need to see a few more months of data to confirm the trend.

But June is in play.

If the next two inflation reports come in anywhere near 2.4-2.5%, the Fed will cut ratesin the second half of the year.

Markets are already pricing it in. Futures jumped this morning. Bond yields are falling. The “higher for longer” crowd just lost their best argument.

Jerome Powell has been saying the Fed is “data-dependent.” Well, today’s data just told him it’s safe to cut.

What This Means For Your Money

If you’re invested in the market: This is bullish. Lower rates = higher stock valuations. Tech stocks especially benefit when borrowing costs fall.

If you’re looking to buy a house: Mortgage rates should start coming down later this year as the Fed cuts. Not dramatically, but enough to matter.

If you’re worried about a recession: Relax. We’re not getting one. The economy is cooling just enough to bring inflation down without collapsing. That’s the holy grail.

If you’re holding cash: Enjoy the high savings rates while they last. They’ll start declining as the Fed eases, but we’re not there yet.

The Bigger Picture

For the last two years, the debate has been whether the Fed could pull off a soft landing.

Could they raise rates high enough to kill inflation without killing the economy?

Could they thread the needle between doing too much and doing too little?

Today’s report is the clearest evidence yet that they did it.

Inflation peaked at 9.1% in June 2022. It’s now at 2.4%. That’s a 70% drop without triggering mass layoffs or a recession.

Yes, the economy is slowing. Yes, job growth is weak. But unemployment is still only 4.3%. We’re not in crisis territory — we’re in “mission accomplished” territory.

The Friday the 13th Irony

This report dropped on Friday the 13th, traditionally considered unlucky.

But for the economy, for markets, and for the Fed’s credibility? This is as lucky as it gets.

• Inflation cooled to the lowest level in 8 months
• Core inflation hit the lowest level in nearly 4 years
• Energy prices helped instead of hurt
• Tariffs didn’t blow up the numbers

This is the 4th consecutive month inflation came in better than Wall Street expected.

At some point, that stops being luck and starts being a trend.

The Bottom Line

Inflation: 2.4% (expected 2.5%)

Core inflation: 2.5% (lowest since March 2021)

Fed’s target: 2.0%

We’re 0.4% away from the Fed’s goal. That’s nothing. We’re basically there.

The soft landing isn’t a hope anymore. It’s not a prediction. It’s happening right now.

After two years of aggressive rate hikes, after all the warnings about recession, after everyone said you can’t bring down inflation without destroying jobs — the Fed did it anyway.

Markets are rallying. Rate cuts are coming. And the “higher for longer” narrative just died.

The economy isn’t collapsing. It’s normalizing.

And that’s exactly what we needed.

P.S. Next inflation report drops March 12. If it confirms today’s trend, June rate cuts go from “possible” to “probable.” The soft landing becomes the official story.

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