Inflation is still rising. What's next for the stock market?

I want to share a quick update after the last inflation data was released last Friday.

I have been sharing for several weeks that this is a battle between curbing inflation by the FED and/or sending the US economy into a recession.

Well, the last inflation data represents an acceleration that puts the FED in the position to become even more aggressive in trying to curb inflation.

The only way the FED have to do it is by making credit conditions worst (cost of borrowing, refinancing, etc going UP), slowing down the economy,and ultimately making inflation manageable again.

Have a look at the last inflation data in the chart and notice the acceleration:

Again, the main component of inflation is food prices and energy, both linked to what is going on with the Russian/Ukrainian war.

So oil prices and PEACE are going to be key in the months ahead to determine the direction of the stock market.

Here is a look at Oil prices that kept rising over the past month: