The stock market has been under tremendous pressure over the past couple of months due to high inflation, the Fed’s aggressive monetary tightening, and the increasing chances of a recession. The Federal Reserve has tried to contain the surging inflation by raising benchmark interest rates thrice this year and is expected to decide on another 75 basis-point increase next week.
Aditya Bhave, the senior U.S. economist at Bank of America Securities, said, "There seems to be an inflation tax on the consumer, and that continues to build up and take its toll and eventually pushes the economy into a mild recession."
