The lower-than-expected October inflation data gave the markets a much-awaited boost. With softening employment growth to add to the tempering inflation rate, there is optimism among investors that the Federal Reserve may limit next month’s interest rate hike to 50 basis points.
The lower-than-expected inflation numbers also provided investors a glimmer of hope that rates may not need to rise significantly above 5%, and a pivot may not be as distant as initially expected.
