Inflation Fear Eases As Consumer Prices Stay Flat
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ISDEX rockets to 477.90 with a change of +45.66 (+10.56%) as the overall market breathes a sigh of relief (for now) that inflation may be at bay after all. Supporting evidence comes via the Consumer Price Index which shows May prices in line with April's.
The CPI is food for the Fed to consider as 1) Federal Reserve chairman Alan Greenspan prepares to talk to the Joint Economic Committee of Congress June 17 and 2) the Fed Open Market Committee plans to have a get-together at the end of June.
Today's rally wipes out Monday's massacre. Are we at the bottom? I believe we could be at "a bottom" (vs. "the bottom") more of a rollercoaster ride until the Fed meets and decides at the end of June.