July’s inflation report just sent mixed signals and Wall Street is already making bold moves.br br Overall prices cooled, with headline inflation holding at 2.7, under expectations. But the number economists watch most, core inflation, jumped to 3.1, the highest since February.br br Driven by rising costs in medical care, airline fares, furniture, and used cars plus new tariffs from Trump’s latest wave, the pressure could still hit consumer wallets later this year.br br Yet despite the hotter core inflation, traders are still betting on multiple Fed rate cuts in 2025.