Inflation has peaked, say almost 90% of fund managers

Throughout this year, leading economists, as well as the giants of Wall Street, have been persistently warning about the upcoming recession.

In their opinion, the prospects for the US economy and stock market will remain vague until inflation declines, which will allow the Fed to stop further raising interest rates or even begin to adjust them downward.

Since the beginning of 2022, the S&P 500 index has fallen by more than 22%, and any stock market rallies are regarded by investment banks as short-term bear market traps.

According to a recent Bank of America survey conducted among fund managers, 87% of respondents agree that the peak of inflation has already been reached. Expectations of 79% of survey participants are associated with a decrease in the inflation rate over the next year, which may be the reason for the Fed's pivot.

Bank of America employees are convinced that the survey results demonstrate that investors are of the opinion that it will not get much worse. This indicates the fact that the Fed's pivot will still take place, but apparently not until next year.

This situation means that the Fed's pivot has not yet become a unanimous decision among fund managers. However, when this happens, the stock market will definitely rise.