The consumer price index (CPI) for October increased 0.4% from the prior month and 7.7% from a year ago, indicating that inflationary pressures are starting to cool. However, inflation remains considerably higher than the Fed’s 2% target, and the cost of living is still quite high.
Moreover, with the target interest rate at 3.75%-4% after the fourth consecutive 75-basis points rate hike and expected to rise beyond 5%, a mild U.S. recession might still be on the cards.
