Another federal rate hike of 75 bps is expected to be announced in November as inflation shows no signs of slowing down. Moreover, the likelihood of an economic recession in the coming 12 months has increased from 49% to 63%, with the possibility of a soft landing for the economy increasingly being ruled out.
Aneta Markowska, the chief economist at Jefferies LLC, expressed her concern by saying, "The coming drag from higher rates and stronger dollar is enormous and will knock off about 2.5 percentage points from next year's GDP growth."
