‘There is nothing not to like’ in June’s ultra-soft inflation report, top strategist says—and Wall Street is starting to cheer the Fed’s firefighting

(Credit: Lian Pan—China News Service/VCG/Getty Images)

A softer-than-expected inflation report had Wall Street celebrating on Wednesday. It wasn’t just the big headline of year-over-year inflation falling to 3.0% in June, its lowest level in more than two years. Core inflation, which excludes more volatile food and energy prices, also sank to 4.8%, its lowest level since October 2021, the Bureau of Labor Statistics (BLS) reported. The numbers are exactly what Federal Reserve officials were looking for amid their fight against stubborn inflation, which peaked at a four-decade high 9.1% annual rate in June of last year. 

“There is nothing not to like in the report,” Ronald Temple, chief market strategist at Lazard, told Fortune. “It’s too early to pop the champagne, but it’s not too early to start chilling the bottle.”