The stock market seems to be at a crossroads. While the Fed’s aggressive rate hikes have pulled down inflation from its summer highs, an uninterrupted hawkishness could trigger a deep recession this year.
The central bank’s rate hikes seemed to pay off as inflation eased in November, with CPI rising 7.1% year-over-year, reflecting that inflation has moderated from its 9.1% peak in June 2022. Inflation has also been lower than expected in October.
