Although the Federal Reserve announced a 50-basis-point interest rate hike last week, breaking a series of four consecutive 75-basis-point rate hikes, officials indicated plans to keep raising rates through next year, with no decreases until 2024. According to its median prediction, the terminal rate might reach 5.1% in 2023.
Amid consecutive rate hikes, recession odds are rapidly rising. According to the New York Fed's Recession Probability model, there's a 38% probability of a recession in 2023.
