Simple question: How's the economy doing?
Answer: It’s complicated.
After the Federal Reserve hiked interest rates again (but less than last time) and all the market volatility, it's a good time to talk about the economy. ¹
Inflation has been falling since summer
Inflation fell for the sixth straight month in December, bolstering evidence that it may have peaked last June at 9.1%. ²
However, inflation is still very high, and its impact is being felt across the economy.
What brings you the greatest joy in life? Your family and friends? Your health, your career, or new experiences?
Whatever it is, we all need things outside of money to truly be happy in life. (1)
Taking a minute to think about those things – like our relationships and experiences – can slow down our recession anxieties when they start to spiral. Learn how in this month’s Visual Insights Newsletter.
With markets caught in a volatile pattern of selloffs and rallies, I thought I'd do a quick round-up of what we know (very little) and don't (a whole lot).
(Don't want to hear about markets right now? I've got you. Scroll down to my P.S. for something fascinating.)
Before I begin, I should say: if you're looking for perfect clarity, you won't find it here. From where I stand, the crystal ball looks murky.
Is the bear market over? Questions on the Inflation Reduction Act?
Let's discuss.
Good news first: inflation might be cooling off. Maybe.
The latest inflation data suggests we could be moving past the peak in some areas.
Gas prices are down (1)
Freight prices are down (2)
Overall measures of inflation are off their highs (3)
Great, right?
