Expectations for price increases over the year ahead fall to the lowest level since April 2021.

In December, inflation cooled to the slowest rate of increase in more than a year, leading some to think the Fed will raise interest rates by just 25 bps late this month.

As price increases seem to have passed their peak, the next big question for the U.S. economy will be how far—and how fast—inflation will fall.

Private payrolls increased 235,000 last month, led by small and midsize businesses.

The resilient labor market is likely to keep the Federal Reserve tilted toward more restrictive policy in the months ahead.

The labor shortfall that has troubled employers since the pandemic hit became even more acute last month, as more Americans dropped out of the workforce.

Consumer spending and business investment are proving resilient, but the biggest contributor to GDP is the volatile net exports category.

However, there's still a long way to go before high inflation becomes history.