Stocks and Bonds Rally on Hopes of Fed Bringing Down Inflation Without Economic Pain
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A benign U.S. inflation report is bolstering hopes that the Fed can bring down consumer prices without hurting the economy, supporting stocks and bonds.
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Both stocks and bonds have rallied in November following October lows, fueled by hopes that the Fed is unlikely to continue raising rates.
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Tuesday's inflation data showed consumer prices unchanged monthly for the first time in over a year, supporting the view that inflation may be peaking.
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Investors are covering bearish bets, especially on growth and tech stocks, with optimism that rates won't rise much further.
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Some investors believe it's too early to declare victory on inflation, as it remains high and the Fed may need to keep policy tight.