The April CPI data was announced, and the increase in CPI from a year earlier was 4.9%, lower than the expected level of 5%. Easing inflation is a good sign for the economy and strengthens the case for a pause in rate hikes.
Inflation was very stubborn in the face of hikes, but it finally easing. However, the strong labor market is a problem, and inflation can't be defeated until the labor market cools down.
The markets will probably react well to the news as the Fed is more likely to pause rate hikes now.
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