The 8.3% year-over-year increase in August Consumer Price Index (CPI) has surpassed economists’ estimates and strengthened the Fed's case for more aggressive interest rate hikes. Hence, market volatility is rife ahead of the Fed’s next rate decision on September 21, with a third consecutive 75-bps rate hike almost certain.
Persistent monetary tightening has come with collateral damage for individuals and businesses with increased borrowing costs, thereby increasing the odds of the economy slipping into a recession.
