After increasing 7.7% in October and 7.1% in November, inflation cooled again in December with a 6.5% increase year-over-year. The Fed signaled a slowdown in rate hikes in response to the easing inflationary pressure but has also stressed that it would continue raising rates until inflation reached its 2% target. The Fed’s progressive rate hikes could potentially push the economy into a recession.
The Conference Board’s Leading Economic Index (LEI) declined for the 10th consecutive month in December, falling 1% to 110.5, while analysts had predicted a 0.7% drop. This trajectory of the LEI signals a recession, with seven out of the ten index components declining in December.
