The risk of a recession has increased significantly after Federal Reserve Chair Jerome Powell indicated last week that the Central Bank is far from done with interest rate hikes. With inflation control and balance sheet reduction being the sole focus of the Fed, optimistic growth estimates and exorbitant valuations seem like a distant memory.
Moreover, investors have begun gearing up for negative earnings surprises as the U.S. retail sales data suggests that consumers are beginning to feel the bite of high borrowing costs and inflation.
