Inflation declined in December 2022 for the sixth consecutive month after peaking in June at 9.1%. The Consumer Price Index (CPI) increased 6.5% year-over-year and declined 0.1% for the month. The Federal Reserve has been battling the price pressures with aggressive rate hikes and remains dedicated to achieving its 2% inflation target.
Money markets anticipate a rate peak of roughly 4.9%, followed by nearly a half-point rate drop by the end of 2023. However, many Fed officials have stated that rates will rise over 5%. Atlanta Fed President Raphael Bostic stated that the central bank should raise interest rates above 5% by early in the second quarter before remaining on hold for “a long time.”
