The Fed has been in its most aggressive monetary tightening campaign since the 1980s to tame soaring inflation. However, inflation is showing signs of cooling down, which might prompt the Fed to slow the pace of its rate hikes. The November CPI headline rate marked the fifth-straight monthly decline, as prices rose 7.1% annually, down from 7.7% in October.
The central bank’s benchmark overnight lending rate currently sits in a target range of 3.75%-4.00%. The moderation in inflation has raised investors’ optimism about the further course of action of the Fed.
