The Fed’s aggressive interest rate hikes since last year are showing results as inflation eased for the seventh consecutive month in January. The consumer price index rose 6.4% year-over-year and 0.5% sequentially. The sequential rise in inflation follows the hotter-than-expected jobs data in January.
Fed Chair Jerome Powell has warned that the central bank may have to raise its benchmark rates higher than previously projected if inflation fails to ease and the jobs market remains tight. This could push the economy into a recession.
