Despite the positive economic data reflecting inflation is easing, the Fed’s median forecast released last week represented a hawkish tone. Fed Chair Jerome Powell emphasized hiking interest rates to as high as 5.1% into the new year, triggering jitters in the U.S. market.
With the broader indexes falling considerably last week, traders realized that next year is going to be painful. Michael Antonelli, managing director at Baird, said, “The market is not worried about inflation anymore. It’s worried about looming recession or the Fed going too far.”
