July’s inflation print was much better than anticipated. Markets and risk assets rallied. The only real negative this week has been the first time unemployment claims are up. What does all of this mean? Have we hit bottom and about to head up? Or, are we still heading into a recession?
To me, the key will be the inflation watch. If prices cool for consumers will the Fed cease rate increases thinking they won the inflation battle? If the Fed ceases increases, will the buyers come back into the real estate market or will the air in real estate continue coming out of the market?
So many questions and no real answers.
