The Consumer Price Index (CPI) for December rose 6.5% from a year ago, reflecting that inflation has peaked. However, with signs of continuing rate hikes through 2023 until inflation falls below 2%, a mild U.S. recession might still be on the cards.
The U.S. economy seems to be at crossroads on prospects of a soft landing or tipping into a recession later this year. While unemployment at 3.4% reflects strong resilience, an inverted yield curve suggests a downturn could be a near certainty.
