The chief investment officer of Morgan Stanley Wealth Management has a warning for investors who are chasing the latest rally in stocks: Don’t get too excited about a potential peak in inflation after the consumer price index cooled off a bit in July.

Lisa Shalett joined this week’s episode of the “What Goes Up” podcast to explain the firm’s cautious stance toward the market, and how CPI is still elevated enough that the Federal Reserve needs to continue lifting rates aggressively. “The direction is correct, but the levels are wrong,” she says of the latest inflation data.