Although the stock market rejoiced after October’s CPI report came in below expectations, many economists have warned of continued inflation. They expect a general decline in headline inflation in 2023 but doubt if it will herald a fundamental disinflationary trend.
Continued monetary policy tightening by the Fed to bring inflation to its target level has raised fears of an economic recession. According to JPMorgan’s CEO Jamie Dimon, rising interest rates, record inflation, geopolitical pressure, and other factors could coalesce into a recession.
