The November Consumer Price Index (CPI) came in lower than expected, encouraging the Federal Reserve to slow the pace of interest rate hikes. The Fed slightly eased its most aggressive monetary tightening campaign in decades by raising its benchmark interest rates by 50 basis points this month after four consecutive 75-basis-point hikes.
According to data released by the Conference Board, consumer confidence improved this month with the easing of inflation. The Consumer Confidence Index now stands at 108.3, up from 101.4 in November. While consumer sentiment and the labor market improved, inflation expectations for 2023 dropped to 6.7%, the lowest in more than a year.
