President Donald Trump’s tariff policies have sparked considerable debate. Critics warn that these tariffs could lead to higher inflation, but recent data has turned some heads.
In a surprising twist, the latest Consumer Price Index (CPI) showed a 2.7% rise year over year in November, down from 3.0% in September. The core CPI, which excludes food and energy, dropped to 2.6%. This caught even seasoned economists like CNBC’s Steve Liesman off guard. Laughing, he remarked, “Maybe coming in a little bit better than expected.”
Others were just as shocked. Harvard economist Ken Rogoff stated, “I was surprised. It was a better number than anyone was expecting.” He noted that the market might view this positively, potentially leading to lower interest rates.
The response from the market was telling. Stocks that had dipped recently saw a rally, with the Nasdaq up 1.4% and the S&P 500 rising about 0.8% the day after the report. According to recent statistics, the U.S. Federal Reserve has already cut interest rates three times in 2025, and if inflation continues to decrease, further cuts may follow in 2026.
Interestingly, lower interest rates make borrowing cheaper, which can boost investments in both stocks and real estate. Real estate has long been seen as a hedge against inflation. Property values and rents typically rise with the cost of living, making it a stable investment choice.
Warren Buffett has always highlighted real estate as a sound investment. In 2022, he expressed his willingness to invest significantly in apartment complexes, underscoring the asset’s income-generating potential.
Investing in real estate doesn’t always require a massive upfront cost. Crowdfunding platforms have emerged, allowing people to invest in rental properties with as little as $100. This creates opportunities for individuals who may not have the capital to buy properties outright.
As we can see, the economic landscape is shifting. Reduced inflation can lead to lower interest rates, which may benefit both stock and real estate markets. Investing wisely now can be a way to build wealth for the future.
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Donald Trump, Steve Liesman, Dave Ramsey, Jeff Bezos, Warren Buffett, inflation, energy prices, Core CPI, Steve Forbes
