The Federal Reserve has undertaken a series of interest rate hikes in an effort to control the surging inflation. Despite rate hikes, inflation came in hotter than expected in September, rising 0.4% sequentially and 8.2% from a year ago. The report initially rattled financial markets, with stock market futures plunging and Treasury yields increasing.
The latest GDP estimate showed that the U.S. economy contracted in the first half of this year. JPMorgan Chase & Co. (JPM) Chief Executive Officer Jamie Dimon cautioned about the possibility of a recession, as persistent and elevated inflation could cause interest rates to rise higher than 4.5%.
