Inflation Improving but Still Elevated; Markets Bet on Fed Rate Cuts in 2023
• Inflation report releasing Friday expected to show core PCE rising 3.3% annually; better than last month, gives Fed room to cut rates in 2023 • Bank of America predicts 152 total global rate cuts in 2023, first year since 2020 cuts outpace hikes • S&P 500 up over 23% this year despite high inflation and rising rates • Fed expected to cut rates by 1.5 percentage points in 2023 per BofA • Markets awaiting Friday inflation data for clues on Fed's next moves on interest rates