With the Federal Reserve’s intention to continue raising rates through 2023, the U.S. and the interconnected global economy are in trepidation of a recession. While the central bank has lowered the magnitude of the increase this month and may not increase it further, the potential terminal rate of more than 5% could push the economy into a recession.
Lingering concerns regarding the magnitude of future rate hikes and the declining probability of a soft landing for the economy will keep the market volatile in the foreseeable future. Hence, it could be wise to invest in businesses providing essential goods and services to capitalize on their inelastic demand.
