The Fed has launched a 75-basis points rate hike this month, the most aggressive rate hike in decades. Moreover, it is expected to deliver another 75-basis-point interest rate hike next month and a half-percentage-point rise in September. The aggressive rate hikes are raising recession concerns, leading to a steep sell-off in the market.
According to Morgan Stanley analysts, “At this point, a recession is no longer just a tail risk given the Fed’s predicament with inflation.” However, consumer staples and grocery stocks usually hold up well in times of recession, as they enjoy a steady demand for their products.
