Simply said, when Inflation comes down, the rate of increase in prices of goods and services comes down. So this is important. US Inflation came down to 6.5% in December after it was 7.1 in November.
I had a fear that in spite of the Fed raising interest rates, the inflation rate was not coming down. I am glad to see that after 6 rate hikes, they are able to tame Inflation finally
I spent time looking at a few times in the last decade when the Fed increased rates to manage inflation. The following are a few observation
1) Prices of stocks will go up in the short run
2) Traders and Investors get excited again about the stock market
3) The extreme market volatility we have been facing in the last 12 months will slow down