Has Inflation (Finally) Peaked?

Stéphane Renevier

4 months ago5:52 mins

Has Inflation (Finally) Peaked?

Investors have recently been betting that inflation has finally peaked, meaning that the Federal Reserve (the Fed) will be able to scale back its interest rate hikes soon – a move that would boost the economy and riskier assets like stocks. But that may be an overly optimistic view: while there are encouraging signs that inflation is easing, other signs suggest we’re going to be dealing with this for a while…

What are the signs that inflation is easing?

The economy is already cooling off. The Atlanta Fed’s GDPNow model – which attempts to track economic activity in real time – estimates that the U.S. economy shrank by 1.6% in the second quarter, suggesting the economy may already be in a recession. The labor market is still stron

Limited introductory offer

Subscribe Now 50% Off

Get full access to daily stories, insights, deep-dives, interviews, podcasts, and more

Have an account? Log in