December 2022 / VIDEO

Video: The 2023 Inflation Outlook

Easing inflation may slow or pause Fed hikes, but we believe a rate cut is unlikely if inflation settles above the Fed’s 2% target

Timothy C. Murray, Capital Markets Strategist

Key Insights

Inflationary pressures have been a headwind for financial markets, so recent reports showing a declining trend in prices have been encouraging to investors.
Moderating inflation may slow—or even pause—Fed hikes in the near term, but we believe a rate cut is unlikely if inflation settles above the Fed’s 2% target.

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