With CPI numbers coming out yesterday below than exepected, inflation rate has also came down to 7.7%. The markets in turn rallied.
The question that is on everyone's mind is "Is this the beginning of a proper rally into the marketsor is this another dead cat bounce?"
Although inflation rate has come down to 7.7%, but it is still not good enough for the FED. They want the target of 2%. To achieve this, they have to continue to keep raising rates to achieve their goal. Therefore, I think that this is just a relief rally before more downside pain is experienced.
But on the flip side, those who have positions in banks outside US should benefit as increasing interest rates would mean that the bank's balance sheet and profits will go even higher!
What are your thoughts? Comment down below!
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