Elon Musk says inflation may have peaked. Bill Ackman agrees, but says the Fed is still making a mistake.

The market has been in full-on party mode in the 48 hours since Fed Chair Jerome Powell said the central bank was shifting to a data-dependent stance for deciding interest rates. That’s best seen in the Nasdaq Composite
COMP,
+1.08%,
which rallied 4.1% on Wednesday and then another 1.1% on Thursday.

Alfonso Peccatiello, who authors The Macro Compass blog, explained it succinctly: “You give markets the green light to freely design their probability distributions across all asset classes without any anchor – and that explains the gigantic risk rally,” he said. “If the Fed is so data dependent and there is basically one data they care about, it all boils down to how inflation will evolve in the near future – and the bond market has a very, very strong opinion about that.”