# White House Claims Fed Inflation Target Hit

> White House says core inflation hit Fed's 2% target, but market prices tightening risk ahead of Fed meeting
- Title: White House Claims Fed Inflation Target Hit · Yahoo Finance
- Summary: White House says core inflation hit Fed's 2% target, but market prices tightening risk ahead of Fed meeting White House's economic official claims…
- Keywords: white house, fed, core cpi, inflation target, nfl, sp500, treasury yield, nvidia, apple, core pce, business, finance
- Source: Yahoo Finance — https://finance.yahoo.com/economy/policy/articles/white-house-thinks-fed-hike-130030332.html
- Published: 2026-09-16T13:00:30+00:00
- Read time: 1 min
- Topics: white house, fed, core cpi, inflation target, nfl, sp500, treasury yield, nvidia, apple, core pce, business, finance
## White House's inflation claim
Kevin Hassett says three-month annualized core CPI hit 2% target, but year-over-year figure remains elevated

> If you look at the last three months, that core CPI averaged and then annualized is 0.2. I mean top line is 0.2 and core is two, which is the target
## Market reaction
SPY down 2.44% this month while up 11% year to date, with NVIDIA and Apple dominating the index
## Fed's preferred measure
Core PCE index rose 0.2% in July to 130.66, still above Fed's 2% target
## Short-term volatility
Three-month annualized CPI readings can flip quickly with energy prices or shelter trends
## Hassett's position
Hassett suggests inflation is slowing but avoids direct recommendation on Fed rate decisions

> So if you look at the sort of near term memory in the stochastic process that drives inflation, then you could see that things are slowing down
## Market implications
Near-flat yield curve and slowing consumer spending could compress equity multiples with next Fed move
## Policy rate context
Fed policy rate at 3.75% since early 2026, with 10-year minus 2-year Treasury spread at 0.33%
## Bull vs bear case
Bull case: sustained inflation cooling could boost equity multiples; bear case: hike into slowdown compresses multiples
## Key takeaway

White House's economic official claims three-month annualized core CPI has reached 2% target, signaling potential rate cuts