Stocks surged higher for the third straight day as Fed rate hike concerns dissipated further. In fact, Fed funds futures contracts show no sign of a Fed move through mid-2008.
It’s a Goldilocks economy--not too hot, not too cold, and the stock market loves it.
For all the hand wringing over inflation, core prices are staying well contained. This is even more evident in the data for non-energy non-food commodity prices, which have dropped 0.7 percent from a year ago.
Inflation is contained, real growth is ramping up to a solid pace, and the Fed is out of the picture.
No wonder markets are happy.