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How PCE inflation can fall to 2% in 2023

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Tumbling prices for durables, nondurables, and a modest decline in services could bring inflation back to the Fed's target. That could allow the Fed to stop raising rates after Q1. If not, the Fed risks overtightening, sending the economy into a hard landing. Even if inflation falls to 2%, we doubt it will stay there for very long.

Ned Davis Research | Fixed Income | Focus | Bi-Weekly

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