December’s inflation report came in better than expected, with headline CPI rising 6.5% from a year ago, indicating that inflation is moderating. Also, wholesale prices rose 6.2% from a year earlier, a sixth consecutive slowdown in 2022.
Easing inflationary pressures are raising hopes of the Fed slowing down its rate hike aggression. Federal Reserve Governor Christopher Waller is supporting a 25-bps rate hike in the upcoming meeting. The eventual loosening of the monetary grip is expected to bode well for the broader market.
