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President Donald Trump has confronted no scarcity of criticism over his sweeping tariff coverage — a lot of it centered on the danger of upper inflation. But the newest client worth index report delivered a real shock.
CNBC senior economics reporter Steve Liesman, who issued stark warnings about Trump’s tariffs earlier this 12 months, appeared caught off guard as he learn the CPI numbers dwell on air Thursday morning.
“Oh,” he mentioned, glancing down on the launch (1). “Maybe coming in a little bit better than expected.”
He quickly added: “I’m not calling, I’m just reading the headlines here, year over year, 2.7. Ex food and energy, core, 2.6. So four tenths off. That is a very good number here.”
Headline U.S. CPI rose 2.7% 12 months over 12 months in November, down from a 3.0% improve in September (2). Core CPI — which strips out unstable meals and vitality costs — additionally eased to 2.6% 12 months over 12 months in November, from 3.0% in September.
Liesman has been among the many most vocal critics of Trump’s tariff technique (3). Back in March, he warned bluntly: “I’m going to say this at the risk of my job. What President Trump is doing is insane,” including that “there’s no bounds around President Trump.”
But on Thursday, as he dug deeper into the newest report, even the month-over-month figures seemed encouraging.
“I have not looked at the internals — I’ll look at them now — but it suggests that the internals are good as well,” he mentioned. “Let’s see. … Seasonally adjusted index for all items, less food and energy, rose 0.2% over the two months. So correct my math here … but 0.2 divided by two is 0.1. So therefore that’s a very, very low monthly rate.”
Liesman wasn’t alone in his response.
In a separate NCS phase, Harvard economist Ken Rogoff acknowledged he was shocked too.
“I was surprised. It was a better number than anyone was expecting,” he mentioned (4). “People were expecting it to be above 3% — it was well below 3%.”
Rogoff additionally highlighted the market implications of the softer inflation print.
“I think the president will take this as good news. The investors will think that interest rates will get cut more, so it was positive news — there’s no other way to spin it.”
Markets appeared to agree. Stocks had skilled a four-day slide forward of the discharge, however they rebounded sharply on Dec. 18: the Nasdaq Composite jumped 1.4%, whereas the S&P 500 rose about 0.8%.
That upward momentum carried into Dec. 19, with the Nasdaq up 1.3% and the S&P 500 gaining 0.9%.
The Federal Reserve has already minimize its benchmark fee 3 times in 2025. If inflation continues to cool, it may give policymakers room to ship further cuts in 2026 — a doubtlessly favorable backdrop for traders.
Of course, constantly selecting successful shares isn’t straightforward. That’s why legendary investor Warren Buffett argues that most individuals don’t want to choose particular person firms in any respect to profit from the inventory market’s progress.
“In my view, for most people, the best thing to do is own the S&P 500 index fund,” Buffett has famously said (5).
This strategy provides traders publicity to 500 of America’s largest firms throughout a variety of industries, offering on the spot diversification with out the necessity for fixed monitoring or lively buying and selling.
With platforms like Robinhood, you possibly can make investments in ETFs just like the Vanguard S&P 500 to get a begin in your nest egg.
Robinhood additionally has 24/7 support, and you won’t pay any commission fees on shares, ETFs and choices. Their platform additionally presents each a standard IRA and a Roth IRA, so you possibly can profit from tax-efficient retirement investing.
Even higher, new Robinhood clients also can get a free stock curated from prime American firms when you enroll and hyperlink your checking account to the app.
Lower rates of interest don’t simply elevate shares — they will additionally breathe life into the true property market. When borrowing prices fall, mortgages grow to be extra inexpensive, which might enhance demand and assist property values.
But actual property isn’t solely about benefiting from decrease charges. It has additionally lengthy served as a hedge in opposition to inflation, as each property values and rents have a tendency to rise alongside the price of dwelling.
In truth, actual property has been a cornerstone of wealth-building in America — and President Trump is aware of that higher than most. Before politics, Trump made his fortune in actual property. High-quality properties can generate rental earnings, providing a reliable stream of passive money stream.
As Trump instructed Steve Forbes again in 2011, “I just notice that when you have that right piece of property, whatever it might be, including location, it tends to work well in good times and in bad times (6).”
Buffett has additionally pointed to actual property as a major instance of a productive, income-generating asset. In 2022, Buffett said that if you happen to provided him “1% of all the apartment houses in the country” for $25 billion, he would “write you a check (7).”
Of course, you don’t want $25 billion — and even to purchase a single property outright — to make investments in actual property. Crowdfunding platforms like Arrived supply a neater means to get publicity to this income-generating asset class.
Backed by world-class traders like Jeff Bezos, Arrived permits you to invest in shares of rental homes with as little as $100, all with out the effort of mowing lawns, fixing leaky taps or dealing with troublesome tenants.
The course of is easy: Browse a curated collection of houses which were vetted for his or her appreciation and earnings potential. Once you discover a property you want, choose the variety of shares you’d like to buy after which sit again as you start receiving any positive rental income distributions out of your funding.
Another choice is First National Realty Partners (FNRP), which permits accredited traders to diversify their portfolio via grocery-anchored business properties with out taking over the tasks of being a landlord.
With a minimal funding of $50,000, traders can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which offer important items to their communities. Thanks to Triple Net (NNN) leases, accredited traders are ready to make investments in these properties with out worrying about tenant prices slicing into their potential returns.
Simply reply a couple of questions — together with how a lot you desire to to make investments — to begin shopping their full list of available properties.
We rely solely on vetted sources and credible third-party reporting. For particulars, see our editorial ethics and tips.
@CNBCtelevision (1); Bureau of Labour Statistics (2); @RpsAgainstTrump (3); @RapidResponse47 (4); CNBC (5, 7); @Forbes (6)
This article supplies info solely and shouldn’t be construed as recommendation. It is supplied with out guarantee of any sort.
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