Aggressive interest rate hikes have been one of the key reasons why the stock market has been under pressure since the beginning of the year. Despite the Fed’s hawkish stance, inflation has persistently hovered around the multi-decade high level.
The stubborn inflation led to the Fed hiking the benchmark interest rate by 75 basis points last month for the third consecutive time. However, September’s consumer price index (CPI) rose 0.4% sequentially, beating economists’ estimates. So, the market expects the central bank to announce another aggressive rate hike in its next meeting.
