The stock market has been under pressure since the beginning of the year due to various macroeconomic and geopolitical concerns. Inflation has been raging, and the Fed has aggressively hiked the benchmark interest rates to bring it under control.
However, despite the Fed’s hawkish stance, inflation is hovering around multi-decade high levels, as was evident in August’s inflation data, with the consumer price index (CPI) rising 8.3% year-over-year, beating economists’ estimates. This sprung the Fed back into action, as it hiked the benchmark interest rate by 75 basis points last month for the third consecutive time.
