The Federal Reserve’s resolve to tame the multi-decade-high inflation has resulted in several interest rate hikes this year. Last week, the Fed announced its fourth consecutive three-quarters of a percentage point interest rate hike, taking the target range to 3.75% to 4%, its highest since January 2008.
The Fed hinted at continued rate hikes until it achieves its long-term inflation target of 2%. Many economists have been worried as they fear a recession next year. The major market indexes have fallen significantly this year, with the Dow Jones Industrial Average and S&P 500 falling 8.7% and 19.7% year-to-date, respectively. On the other hand, the Nasdaq composite has declined 32.1% year-to-date.
