After a hot Consumer Price Index (CPI) report that reflected a year-over-year increase of 9.1% for June, Fed officials have indicated that the central bank will likely raise interest rates by 0.75 percentage points in its meeting later this month after its previous hike of 75 basis points last month.
Citi’s Scott Chronert said, “We anticipate volatility to remain elevated as the market toggles between pricing recession risk and soft landing probabilities with each piece of data.” In addition, Bank of America analysts predict a mild recession will hit in the second half of 2022 as inflationary pressures weigh on consumers.
