The Fed’s aggressive rate hikes have finally started yielding results, as inflation declined in October and November. A slowdown in inflation has also led to the Fed reducing the magnitude of its rate hike to 50 basis points this month.
However, the Fed has raised its benchmark interest rates to the highest level in 15 years. Moreover, the central bank indicated that it would keep raising rates through next year with no reductions until 2024, thus fueling recession concerns.
