Wholesale prices increased less than expected in October, raising hopes that price pressures are cooling down. The producer price index rose 0.2% for the month, lower than the Dow Jones estimate. Moreover, the CPI showed a 7.7% annual gain which was a deceleration from a 41-year peak of 9% in June. This is raising hopes of a slower pace of rate hikes ahead.
Moreover, Treasury Secretary Janet Yellen said, “I expect inflation to come down over time, and Americans are rightly concerned about that, but I believe they’ll be feeling better about it.” In addition, while many experts have warned of a recession, Goldman Sachs believes the Federal Reserve can still pull off a soft landing for the U.S. economy.
