"The deceleration in the Consumer Price Index [8.5% in July] is likely a big relief for the Federal Reserve, especially since the Fed insisted that inflation was transitory, which was incorrect. ... If we continue to see declining inflation prints, the Federal Reserve may start to slow the pace of monetary tightening."

Nancy Davis, founder of Quadratic Capital Management, commenting on Wednesday in the CNBC news story, “Dow Jumps 500 Points, Nasdaq Surges 2% as Investors Cheer Lighter-Than-Expected Inflation Report.”