The Federal Reserve raised interest rates four times this year to reduce the surging inflation. After the 75-basis-point hike in July, at least four regional Fed presidents have indicated that a large interest rate increase is on the table in September and the following months to bring the surging inflation down to around the 2% target, despite the possibility of a recession.
According to strategists at Goldman Sachs, the recent rebound in the U.S. stock is expected to be short-lived, as investors continue to weigh on hot inflation, a slowdown in economic growth, and a possible decline in U.S. hiring.
