The major market indexes have witnessed severe selling pressure of late due to the multi-decade high inflation and the Federal Reserve’s resolution to fight it by aggressively tightening the monetary policy.
The consumer price index rose 8.6% in May, marking its highest increase since December 1981, while the nonfarm payrolls came in higher than analyst estimates, increasing by 390,000 in May. The Federal Reserve has adopted a hawkish stance to tame the surging inflation. It has hiked the interest rates thrice this year, with the latest being a 75-basis point increase last week.
