The recession concerns are rising as the Fed indicated the rate hikes would continue to bring the multi-decade high inflation under control. According to Nobel Prize-winning economist and Columbia University Professor Joseph Stiglitz, hiking interest rates “too high, too fast, too far” would stoke inflation in goods and housing.
However, despite the increasing pressure, the labor market remained resilient, with 3,15,000 jobs added in August, higher than the estimated 2,98,000. “This report supports the Fed’s ability to engineer a soft landing. Markets like it,” said Michael Arone, chief investment strategist at State Street Global Advisors.
