The multi-decade-high inflation has cooled for the second consecutive month in November, indicating that the Fed’s aggressive interest rate hikes might have yielded results. However, with signs of continuing rate hikes through 2023 until inflation falls below 2%, the stock market will likely remain under pressure this year.
According to economists polled in a monthly survey conducted by Bloomberg, the likelihood of a US recession in 2023 jumped to 70%. Comerica Bank chief economist Bill Adams told Bloomberg, “The US economy is facing big headwinds from surging interest rates, high inflation, the end of fiscal stimulus, and weak export markets abroad.”
