Following the Fed’s 75-bps rate hike in September 2022, Atlanta Fed President Raphael Bostic expects the U.S. central bank to hike rates by another 75 bps in November and by 50 bps in December. Amid consecutive rate hikes and rising recession odds, Morgan Stanley has estimated a 3% year-over-year drop in S&P 500 for 2023.
However, Deputy U.S. Treasury Secretary Wally Adeyemo believes that consumer and corporate balance sheets are in good shape. According to him, there are chances of avoiding a recession and achieving a ‘soft-landing’ despite the aggressive rate hikes.
