The Fed recently raised interest rates by 25 bps, its first hike for 2023. This marks a significant slowdown in the Fed's aggressive monetary tightening policy amid declining inflation. Fed Chair Jerome Powell said, "We can now say I think for the first time that the disinflationary process has started."
Moreover, the U.S. job market remains historically tight. Job openings increased by 572,000 to a five-month high of 11 million on the last day of December 2022, beating economists' estimate of 10.25 million.
