While a slight decline in inflation and better-than-expected corporate earnings helped the stock market recover in July and earlier this month, the potential continuation of interest rate hikes has increased market volatility. The benchmark stock indexes witnessed declines in the last two weeks, and the S&P 500 is still down 15% year to date.
Federal Reserve Chairman Jerome Powell said the central bank would continue raising interest rates further to bring inflation down to its 2% target. Senator Elizabeth Warren said she is "very worried" about a potential recession after the Federal Reserve once again hiked interest rates to tame inflation.
