October’s Consumer Price Index (CPI) report sparked a strong stock market rally as it showed signs of abating inflationary pressure. Moreover, the latest Producer Price Index (PPI) report that measures wholesale inflation rose 0.2% in October, below the Dow Jones 0.4% estimate, while the CPI showed a monthly gain of 0.4%, lower than the 0.6% estimate.
Fed Vice Chair Lael Brainard signaled that the Federal Reserve would likely soon slow its interest rate hikes. This is raising hopes that the economy might be able to avoid a recession. CNBC’s Jim Cramer said that he believes the Fed could successfully pull off its aggressive interest rate hikes and tamp down inflation without tipping the economy into a recession.
