Although October inflation data came in lower than expected, showing signs that rising prices were finally cooling, inflation is far from the Fed’s target of 2%.
Moreover, the odds of a recession are rising as the Fed continues its rate hikes to fight the price pressures. The chance of a recession over 2023 has climbed to 65% from 60% in October. In addition, the University of Michigan’s consumer sentiment dropped to 54.7 in November, down 8.7% month-over-month.
