In December 2022, consumer prices posted their biggest monthly decline since early in the pandemic. The final month's Consumer Price Index (CPI) rose 6.5% over the previous year but was down 0.1% month-over-month. The Fed has been battling with soaring prices with consecutive outsized interest rate hikes.
Richmond Fed President Thomas Barkin warned of continued high median inflation and viewed the rate path as "slower, but longer and potentially higher." However, he believes with inflation dropping significantly, the central bank does not need to raise interest rates as forcefully as it did last year.
