May 26, 2023

A U.S. recession may prevent a steep market downturn in the second half of 2023, according to Michael Yoshikami, founder and CEO of Destination Wealth Management.

U.S. consumer price inflation eased to 4.9% year on year in April, its lowest annual pace since April 2021. Markets took the new data from the Labor Department earlier this month as a sign that the Federal Reserve’s efforts to curb inflation are finally bearing fruit.

The headline consumer price index has cooled significantly since its peak above 9% in June 2022, but remains well over the Fed’s 2% target. The core CPI, which excludes volatile food and energy prices, rose by 5.5% annually in April, amid a resilient economy and persistently tight labor market.

Read more:

https://www.cnbc.com/2023/05/26/a-us-recession-would-be-good-news-for-markets-strategist-says.html