Federal Reserve Nears Inflation Control Without Recession

Inflation falls below 2% target, with rate cuts projected for next year despite housing shortage concerns.

Inflation has been falling steadily since peaking in June of last year at 9.1%, with the Federal Reserve's preferred inflation gauge for November likely to show that annual inflation has dipped just below the Fed's target of 2%.
The cost of goods such as used cars, furniture, and appliances has fallen for six straight months, with prices unchanged compared to a year ago due to improved global supply chains.
Housing and rental costs, a major driver of inflation, are growing more slowly, and wage growth has cooled, though it still tops inflation.
The Federal Reserve has discussed the prospects for rate cuts, with projections indicating that the Fed will cut its key interest rate three times next year.
Despite the decline in inflation, there are concerns that a shortage of available homes could raise housing costs in the coming years, potentially keeping inflation elevated.