Investors’ concerns over rising inflation and the Fed’s constant effort to fight it have caused immense market volatility. The stock market posted losses earlier this week as investors remained worried about headlines speculating a recession with the possibility of a 100 basis point rate hike.
The Consumer Price Index soared 9.1% from a year ago, above the 8.8% Dow Jones estimate. Bank of America analysts predict a mild recession will hit in the second half of 2022 as inflationary pressures weigh on consumers. The investment bank expects GDP to decline by 1.4% year-over-year in the fourth quarter of 2022, followed by a 1.0% increase in 2023.
