Wells Fargo Predicts that Inflation will Decline to 2.2% by Year’s End.
According to a note from Wells Fargo, inflation is anticipated to continue to ease and could drop by an astounding 76% in this cycle and to 2.2% by year’s end, supporting a surge in stock prices in the second half of the year.
The bold prediction regarding inflation has some people on Wall Street scratching their heads because inflation is only expected to slow to 6.5% in December, which is still quite a distance from Wells Fargo’s 2%-ish year-end forecast.
The rate of inflation has decreased on average by 70% over the last eight economic cycles, dating back to the late 1969/early 1970 period, according to the bank.
the Fed’s preferred measure, core personal consumption expenditures, were estimated by members according to the most recent projections from its meeting in December.