1. Inflation war is over. Consumers remain anxious over grocery prices. 2. CPI dropped from 9.1% to 3%. Deflation is intentionally avoided. 3. Fed policy slowed money supply growth. Inflation now appears controlled. 4. Be bullish on S&P 500. Concerns over inflation have receded per recent data.
The article argues that easing inflation pressures—evidenced by the CPI drop and controlled Fed policies—should boost market sentiment. Historically, periods following aggressive anti-inflation measures, such as during the Volcker era, have led to equity market rallies.
Macroeconomic commentary on inflation directly influences market sentiment and investment flows, impacting the S&P 500. The analysis provides a positive catalyst for near-term equity performance.
Improved inflation metrics and deliberate Fed policy adjustments are likely to boost investor confidence in the near term, as seen in previous market recoveries after inflation stabilization.