Market Watch Dec 15, 2022

Inflation seemed to have slowed down, but it wasn’t necessarily the reaction markets wanted. This week CPI came in lower than expected, 7.1% vs 7.3% year over year. Markets reacted positively initially to this news, but retraced soon after the FOMC rate hike and press conference afterwards. Powell stated that “we have a long way to go” and that they expected the Fed Funds rate to remain elevated until inflation had returned to 2% target levels. This will be the last time the Federal Reserve will meet until February of 2023.

Key Events To Watch

• Consumer Confidence 12/21

• Core PCE 12/23