President Donald Trump’s tariff policy has been heavily criticized for the risk of higher inflation, but the latest consumer price index (CPI) report surprised many. The U.S. CPI rose 2.7% year over year in November, down from a 3.0% increase in September. Core CPI, which excludes food and energy prices, also eased to 2.6% year over year in November. This unexpected data has led to speculation about potential interest rate cuts by the Federal Reserve in 2026, boosting investor sentiment and market performance.

The softer inflation print has been seen as positive news across the board, with stocks rebounding sharply after experiencing a four-day slide. The Nasdaq Composite jumped 1.4%, and the S&P 500 rose about 0.8% on Dec. 18, carrying the momentum into Dec. 19. Lower interest rates not only lift stocks but can also benefit the real estate market, making mortgages more affordable and boosting demand. Real estate has long been a wealth-building asset, with President Trump and Warren Buffett both recognizing its potential for steady passive income.

Warren Buffett has famously recommended owning the S&P 500 index fund for most investors, providing exposure to 500 of America’s largest companies for instant diversification without active trading. Investing in real estate doesn’t require buying properties outright – platforms like Arrived and First National Realty Partners offer opportunities to invest in rental homes and commercial properties with as little as $100 or $50,000, respectively. These platforms provide access to income-generating assets without the hassle of property management.

Read more at Yahoo Finance: CNBC anchor who blasted Trump’s ‘insane’ tariffs is now shocked by ‘very, very low’ inflation. How to capitalize in 2026