Inflation remains high, but after a year of aggressive interest rate hikes by the Federal Reserve, it has finally started to ease. The housing market started to slow in recent months, and now consumer spending, which remained strong longer than anticipated, is beginning to taper as well. While the Federal Reserve was hoping for a “soft landing” amidst the inflation battle, the majority of economists anticipate some degree of recession in 2023.  Supply chain issues have certainly improved over the past year but are not completely stable. Global issues including Covid outbreaks in China and Russia’s invasion of Ukraine continue to cause strain. Unforeseen domestic issues are creating supply problems as well, including a raging flu season combined with Covid and RSV causing medication shortages and Avian bird flu creating egg shortages. The Federal Reserve is expected to make further interest rate hikes in 2023, however they are expected to be smaller than what was seen in 2022. Oil prices are at $78/barrel.