The Federal Reserve’s multiple interest rate hikes this year finally led to a slight decline in inflation in July. Moreover, the economy witnessed a reduced unemployment rate and increased consumer sentiment. However, since inflation remains elevated and the economic data came out better than expected, the central bank might maintain its hawkish stance in the upcoming months.
Since aggressive interest rate hikes could push the economy into a recession, it could be wise to focus on fundamentally-sound stocks from defensive sectors to cushion your portfolio.
