Receding inflation for the sixth consecutive time in December has raised investors’ confidence and the odds of the Fed slowing its pace on its aggressive rate hikes. But the Fed’s recent hawkish comments signaling rate hikes until the target inflation rate is achieved could keep the stock market volatile for the near term.
The Conference Board’s Leading Economic Index fell 1% in December and 4.2% over the six-month period between June and December, signaling a near-term U.S. recession.
