Inflation has likely peaked already, as it eased in December for the sixth straight month. This might prompt the Fed to slow down its rate hike aggression rate in 2023. According to CME Group data, there stands a 94.3% probability of the Fed hiking rates by 25 bps in February.
Moreover, despite macro headwinds, consumer sentiments have been improving. According to TransUnion's new Consumer Pulse Study, more than half (52%) of Americans turned out optimistic about their financial futures over the next 12 months.
