Sky-high inflation and restrictive monetary policy have led to widespread recessionary concerns. The World Bank slashed its 2023 growth forecast for the U.S. economy to 0.5% from an earlier projection of 2.4%. It further stated, “Global growth has slowed to the extent that the global economy is perilously close to falling into recession.”
However, inflation is finally coming down. The Consumer Price Index (CPI) for December increased 6.5% year-over-year, lower than November’s 7.1% increase. Consequently, a slowdown in the pace of monetary policy tightening is also expected.
