The tightening of the monetary policy to control the multi-decade high inflation, rising energy prices, ongoing Russian-Ukraine war, and intensifying supply disruptions due to the extended COVID-19 lockdowns in China are leading to concerns over the economy slipping into recession. While the major benchmark indexes rallied Wednesday after the Fed’s increase in benchmark rates by 50 basis points, they witnessed a freefall to register this year’s worst daily loss yesterday.
Moreover, the decline in GDP in the first quarter indicates a possible economic slowdown. According to JPMorgan Chase CEO Jamie Dimon, the chances of the Fed curbing inflation without instigating a recession stand at 33%.
