The stock market has experienced a lot of volatility this year, with a sharp spike in inflation and the Federal Reserve’s attempt at taming it by dishing out aggressive rate hikes six times. Recently, the central bank raised rates by 75 basis points for the fourth consecutive time.
Although a slowdown of monetary policy tightening is expected, Jerome Powell has dismissed the idea of pausing rate hikes soon. He stated, “We still have some ways to go and incoming data since our last meeting suggests that the ultimate level of interest rates will be higher than previously expected.”
