May Consumer Price Index (CPI) reported zero inflation for the month. The estimate was 0.1%. This is significant and a powerful indicator for the Feds to start lowering their rate.

Looking at the Year over Year, almost all the inflation that was present was from Shelter and Motor Vehicle insurance.

Everything else only rose 0.21% from last year. Let that sink in. Shelter cost make up 45% of the core index.

Today the feds will be meeting to talk about rate future rate cuts. We do not expect any cuts this month or summer.

Rates have rebounded nicely this morning.