The latest Consumer Price Index (CPI) report revealed that inflation declined for the sixth consecutive month. After increasing 7.1% in November and 7.7% in October, inflation cooled in December to 6.5% compared with a year earlier. While inflation eased significantly, it continues to hover near a 40-year high and is way above the Federal Reserve’s target of 2%.
The Fed is set to slow the pace of its interest-rate hikes but debates how much more tightening is required to get inflation under control. According to Deutsche Bank, global equities could tumble drastically by mid-2023 as a looming recession hits the United States.
