Interest Rates , Likely to Stay High , Despite Inflation Cooling.<br />In December, price growth in <br />the United States cooled, despite the economy <br />continuing to show signs of weakness.<br />NBC reports that inflation <br />ended up at 6.5% compared <br />to the same time in 2021.<br />In line with expectations, <br />month-to-month inflation <br />fell by 0.1% in December.<br />Despite the slowing rate of inflation, <br />the Federal Reserve appears unlikely to pull <br />back from its interest rate hike strategy.<br />According to Federal Reserve Chair <br />Jerome Powell, the central bank will not stop hiking <br />interest rates until inflation gets closer to 2%. .<br />NBC reports that the economy <br />has been buoyed by <br />a strong labor market. .<br />According to the Bureau of Labor <br />Statistics, unemployment has reached <br />a 53-year low, dropping to 3.5%. .<br />However, companies are still facing <br />difficulty in filling positions, as evidenced <br />by the 10.5 million job openings in the U.S.<br />The high number of openings has led to an increase <br />in wages, however the Fed warns that the trend is <br />likely to translate into higher prices for consumers.<br />To be clear, strong wage growth is <br />a good thing. But for wage growth <br />to be sustainable, it needs to be <br />consistent with 2% inflation, Jerome Powell, Federal Reserve Chair, via NBC
