The Federal Reserve’s aggressive rate hikes this year are finally yielding results, as inflation eased for the second consecutive month in November. The consumer price index in November rose 7.1% year-over-year and 0.1% sequentially, coming below analyst estimates.
The Fed also kept its word of slowing down the pace of rate hikes by announcing a 50-basis point hike earlier this month after four consecutive three-quarters of a percentage point rate hikes. However, the central bank intends to keep raising interest rates through next year, with the terminal rate expected to reach about 5.1%.
