At the last policy meeting, the Federal Reserve officials agreed that the central bank’s aggressive interest rate hikes need to slow. After a year of tight monetary policy, the Fed would not want to be more restrictive than necessary and tip the economy into a recession.
Simultaneously, although global economic growth is expected to be sluggish this year, it is not at imminent risk of falling into a deep recession anytime soon. J.P. Morgan predicted that after a tough first half, a Fed pivot could lead to a robust market recovery, pushing the S&P 500 to 4,200 by year-end.
