Price stability is the bedrock of a healthy economy. For starters, the economic expansion of the 1990s and the 2010s, the longest expansions on record per the National Bureau of Economic Research (data pre-dates the Civil War), was assisted by low inflation.

The rate of inflation may have already peaked, but whether the rate of inflation might plateau, decline slowly, or fall quickly is up for debate. Yet, even if inflation has peaked, we aren’t yet seeing ‘peak hawkishness’ from Fed officials. Consequently, good economic news may encourage further hawkishness and rate hikes, which has created headwinds for stocks.

When the economy is expanding, employment typically increases. When the economy is contracting, the number of employed usually declines. Currently, the number of job openings makes it easier to find work in some industries. It appears to be adding to the robust numbers.

Inflation is high, interest rates are rising, and even though our partners at ITR are seeing “green shoots,” they are still small. What accounts for the recent rally?

When investors talk about peak inflation, they aren’t defining it as a peak in prices followed by an actual decline. Peak inflation would better be described as a peak in the rate of inflation followed by a slowdown in the rate of inflation.

Investors grappled with several conflicting events last week. Given the negative sentiment in today’s environment, the market latched on to the glass-half-empty scenario.

Investors grappled with several conflicting events last week. Given the negative sentiment in today’s environment, the market latched on to the glass-half-empty scenario.