Inflation reached a four-decade high last year, pressuring the Federal Reserve to raise interest rates aggressively. The Fed’s hawkish stance to stamp out persistent inflation is finally yielding results, as inflation cooled for a straight second month in November 2022. The Consumer Price Index (CPI) rose 7.1% year-over-year, down from 7.7% in October and better than economists’ expectations of 7.3%.
The Fed broke a string of four consecutive 75-basis-point hikes by raising its benchmark interest rate by 50 basis points in December, bringing rates between 4.25% and 4.5%. However, the central bank indicated to keep raising interest rates throughout this year.
