Cetera Investment Management has released its 2022 Fourth Quarter Outlook. In this outlook, they discuss how the Fed’s commitment to fight inflation at the cost of economic growth and the labor market. The risk of recession is growing, but there are signs from forward looking indicators that inflation could ease faster than expected. Economic data, such as inflation data, can be backward looking and the Fed’s response seems to already be working to some degree in more interest sensitive parts of the economy. The Fed may be fighting the ghost of inflation by tightening into a slowing economy.