Due to the Fed’s aggressive monetary policy stance, the stock market witnessed a challenging 2022. The central bank’s aggressive rate hikes put immense pressure on high-growth tech stocks. The tech-heavy Nasdaq Composite has declined 30.7% over the past year.
The Fed’s seven rate hikes to bring inflation under control showed results towards the end of last year as inflation came below estimates in October and November. However, minutes from the Fed’s December policy meeting indicate that interest rates will keep rising until more progress is made on bringing inflation to its desired level.
