Last week I warned that that the Fed would be spooked by the uptick in inflation. In particular, I noted that the CPI had begun turning up after effectively flatlining for six months. See for yourself. 
The incoming Trump administration has made it clear that it sees the Fed as a political entity that favors the left. In this context, Trump sees any uptick in inflation as 100% the fault of the Fed.As I warned last week, this meant the Fed was likely to disappoint the markets at its Wednesday meeting, resulting in stocks getting slammed lower. Specifically, I warned that the Fed would get spooked by the inflation data, that it would pull back on its intended rate cuts in 2025, and that this would result in stocks getting slammed downward as investors panicked.And that is precisely what happened.The S&P 500 experienced one of its worst down days in years, falling nearly 3% and wiping out all of its post-election gains. Most investors panicked and sold the farm as they believed this was IT as far as the bull market was concerned.
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