Higher-than-expected inflation numbers for August have compelled the Fed to announce another 75-basis-point interest rate hike today. After a third straight outsize interest rate hike, the central bank officials now predict the key rate to end 2022 between 4.25% to 4.5%.
Market volatility is rife, with CBOE Volatility Index up 56.5% year-to-date with speculations of a recession on the horizon. Bank of America's Global Fund Manager Survey found that 58% of investors expect a recession in the coming 12 months. In concurrence, former U.S. treasury secretary Larry Summers has warned investors to prepare for a bumpy recession.
