IF ALL YOU WANTED FOR CHRISTMAS WAS TWO PERCENT INFLATION, YOU’RE IN LUCK!

Barring unforeseen events, it appears the United States Federal Reserve (Fed) is on the cusp of accomplishing a feat many thought impossible – reducing inflation without causing a recession. 

From March 2022 to July 2023, the Fed raised the federal funds rate 5.25 percent – the most aggressive increases in decades, reported Felix Richter of Statista. There was considerable skepticism about the Fed’s ability to bring inflation down to its 2 percent target, especially as prices continued to rise, with inflation peaking at 9.1 percent annualized in June of 2022.