The layoffs are just beginning.

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Microsoft just slashed jobs again. Not because it’s in trouble—but because it can’t pass rising costs to customers. CPI came in “cool”… but it’s not good news.

It’s proof the economy is too weak to handle cost pressures—so firms are cutting labor instead.

Even with tariffs, prices aren’t rising. Why? Because businesses are eating the costs. Not voluntarily—they have no choice. Demand is too soft. Consumers too tapped out.

And here’s the kicker: this disinflation isn’t new. It’s been hiding behind shelter imputations and bad data. Strip that out, and prices are flat—or falling.

That’s not strength. That’s quiet collapse.

The Fed talks tough, but the market knows. Job cuts, cost compression, consumer retrenchment—it’s a vicious cycle.

And now it’s gaining speed.