Equity investors were broadly rewarded in May while short-term Treasury rates were little changed and longer-term rates declined. Last year we observed a dramatic reduction in inflation paired with ongoing economic strength. Now economic softness may be required to fight the last mile of inflation and invite Fed rate cuts, or at least drive out any fears of a rate hike. May delivered well-behaved inflation data and some news of softness, but not too soft, and the markets responded positively.