Inflation cooled for the sixth straight month in December. The Consumer Price Index (CPI), which peaked at 9.1% in June of last year, increased 6.5% annually, down from 7.1% in November. However, Lael Brainard, the governor of the Federal Reserve, argues that interest rates need to remain high despite inflation showing signs of cooling.
As long as inflation remains above the Fed's 2% target, a series of rate hikes might push the economy into a recession. Jamie Dimon, CEO of JPMorgan Chase & Co. (JPM), has warned that continued rate hikes “might derail the economy.”
