Moderating inflation for the sixth consecutive time in December 2022 substantiates that the Fed’s hawkish stance had its intended effect. However, as inflation remains significantly higher than the desired level of 2%, the Fed has clearly stated its intentions of rate hikes but at a slower pace.
Recently, the Federal Reserve raised interest rates by 0.25 percentage points, slowing the pace of its increases. The central bank’s benchmark overnight lending rate is now 4.50%-4.75%, marking the highest level since October 2007.
