Stocks have been under pressure as the Fed’s relentless monetary tightening has increased the likelihood of the economy entering a recession. The Federal Reserve appears to remain hawkish until inflation begins to fall more sharply, and the labor market weakens. According to minutes released Wednesday from the central bank’s December meeting, the Fed officials see higher rates for ‘some time’ ahead.
Many economists predict an approaching economic downturn. Kristalina Georgieva, IMF director, warned of a “difficult year” ahead, with one-third of the global economy potentially entering a recession this year. Furthermore, nearly 90% of CEOs polled by KPMG expect the economy to enter a recession this year, with 34% expecting it to be brief and moderate.
