October’s core personal consumption expenditures price index report presented inflation at a 6% annual rate, down from 6.3% in September, indicating that inflation is on its way down. Now the question remains whether the Fed can pull off the “soft landing” that would see the economy and inflation slow enough without throwing the economy into a recession.
After hiking the benchmark rate by 75 basis points four times in a row, the Fed will likely increase interest rates by 50 basis points next week. However, the strong jobs report might encourage the central bank to reach a higher rate than expected. As a result, the economy will most likely tip into a recession next year.
