Expectation baked in

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Expectation baked in

IS expectation baked into the market, the only issue is that consumer spending is dropping.  Is company spending taking up the slack to curb the human costs which mostly can be automated or outsourced?

More telling is that in the final month of 2022, headline CPI fell 0.1 points from November. That's the largest month-over-month ("MOM") decline since April 2020, led by a steep drop in gas prices.

The markets expected a report like this. So with expectations already baked in, the major U.S. indexes didn't move all that much after the numbers were released. And according to Stansberry NewsWire analyst Kevin Sanford, this latest inflation reading "could force the Fed's hand." As he wrote...

This marked the sixth consecutive month where the annual CPI number has remained below its June peak. It's also the lowest [year-over-year] reading since October 2021.

Take a look...

This should give the Federal Reserve room to slow the pace of interest-rate hikes going forward. Even more, if the MOM inflation changes continue to cool, the central bank could hit the pause button on rate hikes sooner than expected...


 

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