The Federal Reserve has been trying to tame the surging inflation by raising the interest rates. After the second straight 75-basis point hike last week, at least four regional Fed presidents have indicated that a large interest rate increase is on the table in September and in coming months to bring the surging inflation down to around the 2% target, despite the threat of an impending economic slump.
Moreover, the U.S. economy contracted for two consecutive quarters this year, making many analysts believe that a recession has arrived. However, better-than-expected corporate profits and some favorable economic data are providing great support to the stock market lately.
