The Consumer Price Index (CPI) for August increased 8.3% year over year, topping market expectations. This led the Fed to declare its third straight 75-basis-point rate increase in September, sparking worries about an economic slump.
The market has remained erratic due to worries of an impending recession, as seen by the CBOE Volatility Index's year-to-date increase of nearly 76.5%. Furthermore, in contrast to earlier forecasts of 3.25% to 3.5%, Fed officials now expect the key rate to end this year between 4.25% and 4.5%.
