While many economists agree the Federal Reserve "could still pull off" a soft landing as inflation appears to be cooling at least somewhat, "there are certainly no guarantees," according to one industry watcher.

"Wall Street rejoiced on November 10 when the October CPI reading declined and headline inflation retreated to 7.8%," says John Chang of Marcus & Millichap. And "digging under the surface, there are some promising trends" — including the lower price of lumber and steel, which quadrupled in price during COVID-19, and the declining cost in shipping a container from China to Los Angeles, which now stands at around $2,700, down 86% from its peak. The producer price index, which measures wholesale prices, is also showing a decline.

These indicators are promising — but will they be enough to induce the Fed to back off on further rate increases? Chang notes that Fed Chairman Powell has suggested the central bank will likely make smaller rate increases going forward, signaling an ease on the pressure, but the overnight rate will still likely increase by 50 basis points in December and by  25 to 50 basis points in February.