The Fed is expected to hike rates further in 2023. According to Bankrate’s Fourth-Quarter Economic Indicator poll, the Fed will likely take rates to a target range of 5.25-5.5%. However, the rate hike aggression is expected to cool down as inflation shows signs of slowing.
Nonetheless, experts still anticipate a recession later this year, which should keep the market under pressure. Marko Kolanovic, Chief Global Markets Strategist, Co-Head of Global Research J.P. Morgan, believes market volatility will be one of the predominant factors in 2023.
