The sky-high inflation and the Fed's aggressive stance on it have led the benchmark indices into bear market territory. The S&P 500 has declined 20.4% year-to-date. Moreover, according to Societe Generale, the S&P 500 index is expected to slide another 24% by 2022.
Furthermore, Deutsche Bank Chief U.S. economist Matt Luzzetti believes that the CPI rate will peak at 9% later this year. Also, Deutsche Bank analysts have projected a 3.1% contraction in U.S. GDP in the third quarter of 2023, earlier than its previous estimate.
