Despite November’s consumer price index (CPI) coming in less-than-expected at 7.1% from a year ago, the Fed has not pivoted away from its interest rate hike regime as inflation is still far from its target of 2%.
The Fed announced a 50-basis point rate hike, taking the borrowing rate to a targeted range between 4.25% and 4.5%. The central bank is also projected to raise it to 5.1% in 2023. Moreover, even though consumer sentiments peaked after November inflation data, experts warn that market volatility could continue in the foreseeable future amid recessionary concerns.
