The Federal Reserve raised interest rates seven times in 2022 to contain the multi-decade-high inflation. The Fed increased its benchmark interest rate to the highest level in 15 years, taking it to a range of 4.25% to 4.5% at its December meeting.
However, inflation is showing signs of cooling, as the Consumer Price Index (CPI) rose 6.5% year-over-year in December, down from 7.1% in November and a peak of 9.1% hit in June last year. With inflation’s continuous drop in December, Fed policymakers indicated a slowdown in the pace of rate hikes but no easing.
