The multi-decade high inflation and the Fed’s constant efforts to fight it by raising the interest rates have led to massive sell-offs on Wall Street over the past couple of months. The S&P 500 is still down more than 18% year-to-date. Earlier this month, the Fed raised interest rates by 75 basis points, the largest increase in nearly three decades, and also hinted at more aggressive tightening ahead.
Many analysts expect the Fed’s hawkish moves could eventually tip the U.S. economy into a recession. However, Jack Ablin, chief investment officer at Cresset Capital, said, “We’re calling for a small ‘r’ recession. It means it’s not going to be protracted, and things aren’t going to fall apart.”
