November’s headline and core CPI rates moderating at 7.1% and 6% were welcomed with a rally in the stock market and declining bond yields. Indeed, hopes of the market are high that this month might mark the beginning of the end of aggressive interest rate hikes that have dominated the macroeconomic climate this year.
Michael Smith, senior portfolio manager at Allspring Global Investments, expressed his optimism by saying, “I think that we may have reached the end of upside surprises of inflation, which is obviously positive.”
