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CPI came in at 0.4%, 0.1 percentage point above expectations, while core CPI was stuck at 0.3%. Bets on a December rate hike took off, and stocks were first to take a hit. Inflation hasn’t let up, so the Fed has no off-ramp and will have to keep rates high, weighing on both stocks and bonds. With this report out, it’s time to put those rate-cut fantasies on hold. What about you?

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