Inflation slowed for the sixth consecutive month in December, signaling that the Fed’s seven interest rate hikes last year had a decelerating effect on inflation. However, the U.S. jobless claims for the week ended January 14, 2023, fell to their lowest level in more than three months, signaling continued tightness in the labor market.
Minutes from the Fed’s policy meeting in December show that the central bank remains committed to bringing inflation down to its 2% target. So, a pause in interest rate hikes is highly unlikely this year, leading many analysts to fear that there could be a recession this year.
