Biden Takes Victory Lap After This

Here’s what could happen next.

JP Morgan has found that it has become increasingly likely that inflation has officially peaked and about to finally start coming down.

According to Insider, a very good jobs report coupled with weaker than expected CPI for July has changed the view for JPMorgan’s Marko Kolanovic and he now believes inflation can now be cut in half towards the end of the year.

Kolanovic explained, “The breadth of US inflation has improved from June with not only energy but apparels, education and communication commodities and services and transportation services.”

“Hence, there is evidence that a peak in inflation is not a US-specific development,” he added.

Kolanovic explained that he believes inflation will fall by 50% and come back down to 4.7% in the second half of this calendar year.

This means if inflations comes down, it will likely result in the Federal Reserve also lowering their interest rate hike trajectory.

“We feel the uptick in risk appetite is justified on a more fundamental basis even if many have attributed the recent improvement in market sentiment to technical factors, short-covering, or ‘bear market rally,’ with moves magnified by already low liquidity and positioning,” Kolanovic added.