Once again, the consumer price index fooled the so-called experts, and came in much tamer than expected.

And, once again, the tariff-inflation tariff-derangement crowd has been proven wrong.

And, once again, it’s high time for Jerome “Too Late” Powell’s Federal Reserve to cut its target rate.

A Fed governor, Christopher Waller, has suggested rates should be 150 basis points lower. I think that’s about right.

In the middle of all this, stocks continue booming and hitting new records.

Take a quick look at the numbers.

Over the past six months, while President Trump has been commander in chief, the CPI has increased 1.9 percent at an annual rate. The so-called core rate, excluding food and energy, 2.4 percent.

Probably the most important data is that there’s virtually no goods inflation — which is the most tariff-sensitive part of the index.

Over the past three and 12 months, goods have only increased 0.7 percent at an annual rate.

So, all this sets the stage for significant Fed rate cuts.

They should’ve done it in May, should’ve done it in June, should’ve done it in July, they could still do it here in August, with or without a scheduled meeting — except for Mr. Powell’s stubbornness.

Now, the Council of Economic Advisers chairman, Steven Miran, will move to the Fed, hopefully next month.

And, frankly, that makes Mr. Powell a lame duck.

The whole center of gravity changes with Mr. Miran.

If Mr. Powell doesn’t endorse major rate cuts, he’ll have a revolt on his hands. A policy revolt from both Trump and non-Trump appointees.

Mr. Powell has already jeopardized Fed independence with his erratic behavior.

Missing inflation, then rapid-fire rate hikes, then all kinds of politically correct debanking, DEI, ESG, climate nonsense. 

Then, politicizing the Vice President Kamala Harris pre-election rate cut. And now politicizing high rates under Mr. Trump.

Mohamed El-Erian has been right. Mr. Powell should resign — in order to preserve Fed independence.

But I digress.

The key point is: Inflation remains low.

This sets the stage for an easier Fed, and an entirely new group will be taking over before long.

Can’t come soon enough.

From Mr. Kudlow’s broadcast on Fox Business Network.