Posted 12/18/2023, 11:33:35 AM
Inflation Plummets as Economy Defies Predictions of Recession
- Inflation has dropped rapidly from 9.1% to 3.1%, defying predictions of a recession being necessary to tame prices
- The Fed and White House are claiming vindication for policies pursued amid criticism, with the economy proving more resilient than expected
- Supply chain improvements and cooling of energy prices have contributed greatly to the inflation slowdown
- Unemployment remains low at 3.7% despite rate hikes, and the Fed is now planning cuts for 2023
- Significant risks and uncertainty remain, but the economy has so far achieved a soft landing in transitioning from high inflation to stable growth