The Fed’s aggressive fight against sky-rocketing inflation has hit investors’ sentiments and pushed stocks into bear market territory. With the fourth consecutive 75-basis-point rate hike by the Fed, Chair Jerome Powell indicated that even if they were to slow the pace of rate hikes moving ahead, it is nowhere close to ending.
On the other hand, the U.S. economy grew at an annual rate of 2.6% in the third quarter of 2022, marking a sharp turnaround after six months of contraction. Despite lingering recession fears, the economy seems to be resilient and could soon expect a market recovery.
