Despite signs of inflation easing, the Federal Reserve recently indicated that interest rates could hike to 5.1% in 2023. The policymakers also revised their outlook for economic growth in 2023 downward from the 1.2% forecast in September to 0.5%.
Moreover, U.S. business activity contracted further in December as new orders slumped to the lowest level in just over 2-1/2 years. These concerning economic data have reinstilled recessionary fears among investors.
