Delly Kelly, one of the analysts from JPMorgan, said that the Federal Reserve has managed to win the war over the recession. Now the US economy is headed for something better. But before that, what are the sacrifices of the FED and American citizens?

"This is a war that the Federal Reserve has won, and now they are in danger of tipping the economy into recession, and if it goes wrong, this could cause even worse fiscal problems. So, I hope they will be done," said David Kelly, an analyst at JPMorgan Chase & Co.

This strategic expert from JPMorgan Asset Management Business also said that the interest rate must stop increasing before it ultimately damages the US Economy. And he said that he expected the central bank to keep the rules the same for a while.

He noted that the market might accept rate hikes in February and beyond. Future needs also expect that 25 basis points after the next meeting are what the Fed will do. So for the time alone, he hopes the US Economy can remain strong.

US Inflation Eases Again to 6.5% Over the Past 12 Months, but Fed to Cut Interest Rates

"The US economy remains strong, with consumers still using excess cash and business health spending. However, we still do not know the ultimate effect of the headwinds coming from geopolitical tension," said CEO Jamie Dimon.

He also said that issues of geopolitical tension could come from the war in Ukraine, the vulnerable state of energy and food supplies, and persistent inflation that is eroding purchasing power, which might cause unprecedented quantitative tightening.

Meanwhile, experts also say that 2023 is getting underway, and markets are clinging to the expectation that the US economy will slide into a recession. But the data released a few days ago showed that inflation has moderated.

This is bad news or good news, but US markets got a good start in 2023, creating long-standing correlations between asset classes. Unusual dynamics also emerge, but the FED can likely become a pivot for its policy.

But the most important thing is the rising consumer prices in the United States which moderated again last month. This provides a good grip on inflation. Inflation has become painful for many Americans, especially in the past 18 months.

Apart from that, the US economy was able to defeat inflation because last December, the unemployment rate managed to fall by 3.5 per cent, adding 223 thousand jobs with solid capital, so it became support for the economic growth of the US public.

However, this is only partially smooth sailing. The FED and US citizens both sacrificed a lot to be able to accept this positive movement. And what's even better is that the FED won the war over inflation in early 2023, so a perfect start.

What Did it Cost Americans and the Fed to Succeed in Reducing the Threat of Inflation and Recession?

According to US economic data, supply chain issues and inflation provide the most alarming news for business owners. Because of this data, they need help to adjust to the market. In place for their money, business owners need a plan and assessment.

Furthermore, due to inflation hitting a 40-year high, Americans also spend an extra $371 a month. This is due to significant price increases, especially in food. This also doesn't count the prices of some food items, which have risen 60% over the past year.

The industry in the US has a lot to be grateful for with the FED, which has succeeded in making the country's economy recover. Market analysis agency JPMorgan has said that the US managed to beat inflation. But, in the last 18 months, the FED and Americans have struggled.