The Fed raised the benchmark interest rates by 75 basis points this week for the third consecutive time and hinted at two more outsized hikes by the end of this year. The central bank’s aggressive stance increases the risk of recession.
The equity markets have reacted negatively to this news, as analysts and economists reiterated their expectation of a recession in the near term. The S&P 500 index declined 21.1% year-to-date and 3.7% over the past five days.
