The sky-high inflation has recently shown signs of cooling after the Fed’s aggressive interest rate hikes. Investors are hopeful for a positive outcome in the near term as recently released minutes of the Fed’s meeting expressed support for smaller rate hikes in response to cooling inflation.
With hopes of a pivot in the Fed’s hawkish stance, beginning with a downshift to a 50 basis-point rate hike in the coming month, the stock market has gained recently. However, Deutsche Bank believes the bear market rally could continue into next year before slumping as a global recession takes hold.
