The U.S. Gross Domestic Product (GDP) increased at a 2.9% annualized rate in the fourth quarter of 2022, exceeding the Dow Jones forecast of 2.8%. Increases in consumer spending, government spending, private inventory investment, and nonresidential fixed investment drove the fourth-quarter recovery.
Moreover, in December, inflation declined for the sixth straight month, indicating a cooling trend. This encouraged the Fed to slow the pace of its rate hikes, as it raised its benchmark interest rate by a quarter percentage point Wednesday.
