The Most Important Debate on Wall Street: Is Inflation Licked?
Most of Wall Street thinks inflation has been conquered. There is a lot at stake if they are wrong.
Encouraging inflation data recently propelled a big rally across markets, with a traditional portfolio of stocks and bonds last month delivering one of its best returns of the past 30 years.
Confident that the Federal Reserve is now cruising to its goal of 2% inflation, investors have dialed up bets that the central bank will start cutting interest rates by spring to prevent a recession. That would mark the end of an inflation-fighting campaign...