The Fed can take the rest of the year off as inflation is crumbling and there's no recession in sight, market vet Ed Yardeni says

• The Fed can take the rest of 2023 off, according to market veteran Ed Yardeni.
• That's because inflation is falling, which means the Fed has room to back off of rate hikes. 
• The US may be able to avoid a recession after all as the economy enters a "rolling recovery," he added.

The central bank can take the rest of the year off. Inflation is dropping, and there's no sign that the economy will tip into the recession investors have fretted about, according to Ed Yardeni.

The Yardeni Research president pointed to signs of cooling inflation in the economy, with prices accelerating just 3.2% year-over-year in July, according to the latest Consumer Price Index report.