Despite inflation decreasing faster than anticipated and a low unemployment rate, there are still three leading economic indicators that suggest a potential recession: yield curve inversion, leading economic indicators (LEI), and the purchasing managers' index (PMI). The Federal Reserve's upcoming monetary policy tightening and interest rate hikes for 2023 pose a challenge as being too strict could lead to a recession, while being too lenient could trigger high inflation. The decisions made by the Federal Reserve will reveal economic confidence and could impact cryptocurrency and risk-on markets. This article serves as general information and should not be taken as legal or investment advice. The author's opinions do not necessarily align with those of Cointelegraph.