The constant rate hikes by the Fed to curb inflation kept the stock market under pressure last year. However, inflation cooled down again in December 2022. CPI increased by 6.5% year-over-year and dipped 0.1% over the prior month, in line with the Dow Jones estimate.
However, since inflation is far more than the desired rate, the central bank has expressed its intentions to continue rate hikes until it falls below 2%. Financial markets have priced in a 25-basis-point rate increase in February.
