The Fed’s strong determination to bring the multi-decade high inflation levels under control finally seems to show results as the CPI report for October came in lower-than-expected after six aggressive rate hikes. Inflation rose 0.4% sequentially and 7.7% year-over-year last month, lower than analysts’ estimates. Furthermore, the Fed’s policy meeting earlier this month also indicated a slower pace of rate hikes going forward.
Although many are concerned that the historic pace of interest rate hikes could tip the economy into a recession, research by Goldman Sachs shows that the U.S. economy will probably stick to a ‘soft landing’ next year. The bank believes that there is just a 35% chance of a recession against the 65% median, as per a Wall Street Journal survey.
