Inflation has certainly started to cool off from the 40-year highs we saw in mid-2022, but they are still far greater than the Federal Reserve's 2% target. Most experts believe it will take a little longer for the Fed to get inflation under control with the current rate-hike cycle, but we're seeing signs that inflation might already be more controlled than it appears. For example, the month-over-month inflation rate was negative 0.1% in December and has been rather low in other recent months as well.

Clearly, if the Fed were to get inflation under control sooner than expected in 2023 and start lowering interest rates as a result, it would likely be a positive catalyst for stocks. But here are two in particular that could be especially big beneficiaries.

Inflation has been particularly rough on the homebuilding industry. Not only have housing costs skyrocketed, with the median new home price about 40% higher than pre-pandemic levels, but thanks to the Fed's interest rate hikes, mortgage interest rates have been trending upward over the past year. Some homebuilders have reported fourth-quarter contract cancellation rates of more than 65% as buyers are changing their minds.

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Source Fool.com