Last week, I provided a quick analysis on the surprise jobs report. In the blog, I shared a perspective that the continued expected decreasing Inflation Rate would eventually convince the Federal Reserve to cut interest rates sooner than expected In our opinion, a cut in interest rates would stimulate the economy and be good for business.

A week ago, it seemed an absolute certainty that the Inflation Rate would continue to decrease, the job market would continue to be white hot, and everyone was buckling up for an uncertain economic future. But seemingly out of nowhere, the Bureau of Labor Statistics sent out a December surprise: seasonally adjusted inflation rose 0.3% for the month and 3.4% for the year. That is a significant number for one month especially when that month is December and the last month of the year.