U.S. inflation may drop to 4% in 3-4 months -financial advisor

STORY: Headline inflation remains above the Federal Reserve's 2% target.

The Labor Department's CPI report from earlier this month showed U.S. consumer prices grew 6.5% on an annual basis in December, in line with expectations, from a 7.1% rise last month.

On Friday, the Commerce Department's personal consumption expenditures (PCE) report arrived largely in line with consensus, showing softening demand and cooling inflation - which is exactly what the Federal Reserve's restrictive interest rate hikes are intended to accomplish.