The stock market faced several macroeconomic and geopolitical challenges in 2022, including inflation rising to a 40-year high. However, inflation eased for the sixth consecutive month in December, with the Consumer Price Index (CPI) rising 6.5% year-over-year and declining 0.1% sequentially.
Although inflation is showing signs of easing, minutes from the Fed’s December policy meeting show that the Fed will continue with interest rate hikes until it brings inflation down to its desired level. This is expected to push the economy into a recession this year.
