After the Federal Reserve raised interest rates to its highest level in 15 years, inflation cooled in the last three months, with December’s CPI increasing 6.5% year-over-year and declining 0.1% sequentially. While this shows that prices are finally coming down, Fed officials have indicated that the central bank would keep raising the interest rate this year until inflation falls to its desired level.
As a result of tight policies, the World Bank stated, “Global growth has slowed to the extent that the global economy is perilously close to falling into recession.” With the stock market expected to remain under pressure, established companies with strong financials could provide safety for investors navigating market volatility.
