Data Shows Inflation Slowing Despite Hawkish Fed Rhetoric, Stocks Poised for Q4 Rebound

Treasury yields have risen sharply recently due to Fed rhetoric about staying higher for longer to control inflation, despite economic data showing inflation slowing.

High job openings have not led to corresponding high job growth, so it should not be assumed openings will fuel more inflation.

Wage growth continues to decline from 2021 peaks, not accelerate as would be expected with high openings.

Inflation is likely near 2% if you exclude rent, so the Fed has largely accomplished its goal of price stability.

With volatility high and oversold conditions, a stock rebound is likely in Q4 as earnings arrive, just as in past similar situations.