The Federal Reserve is potentially in big trouble after this mornings CPI (Consumer Price Index) Report. While the headline number came in at 0%, the core (minus food and energy) came in at 0.3%. This was slightly more inflation than expected and if we start seeing this trend continue, it kills any chance of negative interest rates as an option for the Federal Reserve. Negative interest rates was the last silver bullet the Federal Reserve had in its arsenal, after years of quantitative easing (printing money) and zero interest rate policy. Note: Japan has done it recently, so far without any benefit.