Have we hit peak inflation?
As we kick off the new year, investors may be thinking about what will shape their investing journey in 2023. Here are five big investing themes that may dominate the year.
In 2023, the focus on inflation will remain — specifically on whether US inflation has peaked, with November’s core Consumer Price Index (CPI) making its smallest advance in 15 months. (Core CPI strips out energy and food prices due to their volatility.) This attention to the surging consumer prices in the world’s largest economy comes because the Fed has been aggressively hiking interest rates to fend off runaway inflation. In 2022, the Fed made seven rate hikes, bringing the benchmark fed funds rate to a range of between 4.25% and 4.5% — a 15-year high. It is the most aggressive Fed rate-hike cycle in more than 40 years.
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