The Federal Reserve took its funds rate to the 3%-3.25% range in September, the highest since early 2008, and plans on continuing its hawkish rate hikes until inflation comes down to its target level of 2%. The Fed's aggressive monetary policy tightening is raising the odds of a recession. According to JPMorgan’s CEO Jamie Dimon, U.S. stocks could tumble another 20%, while the economy might tip into a recession in 2023.
The International Monetary Fund has cut its global growth forecast to 2.7% for the next year and has warned of a lot of economic pain ahead. Tense geopolitical outlook amid the Russia-Ukraine war, UK’s cost-of-living crisis, and an economic slowdown in China due to the Covid-19 are also hindering global growth prospects.
