The Fed is expected to keep hiking rates well into 2023. However, the rate hike aggression is expected to be eased, which might bode well for the stock market. According to Fed Chair Jerome Powell, "We wouldn't just raise rates and try to crash the economy and then clean up afterward. I wouldn't take that approach at all."
Moreover, in the face of rising recession odds, the U.S. labor market remains tight. National Economic Council Director Brian Deese believes the U.S. economy is showing "continued resilience" despite a forecasted growth slowdown.
