According to the Federal Reserve, U.S economic activity expanded modestly in recent weeks. Moreover, the Fed noted that the inflation pressures had eased somewhat and are expected to wane further, indicating that the aggressive interest rate hikes may have started to turn the tide.
However, inflation is nowhere near the Fed’s target of 2%, and the Fed is expected to continue its rate hikes to tame it. Amid the consecutive rate hikes, a recession looks increasingly likely.
