This month, the Fed’s third consecutive 75-basis-point rate hike has led to a broad-based stock market sell-off, sending the S&P 500 to a new low for the year. Officials now predict the key rate to end at 4.25% to 4.5% in 2022 and 4.5% to 4.75% in the next year, indicating another three-quarter point hike in November and a half-point rate rise in December. This makes it unlikely for the market to return to stability anytime soon.
However, on the bright side, CNBC’s Jim Cramer said inflation could soon decline, leaning on charts analysis from legendary technician Larry Williams. “The charts, as interpreted by Larry Williams, suggest that inflation could soon cool down substantially — soon — if history’s any guide,” he said.
