The Federal Reserve announced a 75 basis-point rate hike last week, the largest in 28 years, to combat the rising inflation. Moreover, Goldman Sachs expects another 75 bps hike in July. The market volatility is evident from the CBOE Volatility Index’s 83% year-to-date gains. The S&P 500 is down 22.9% year-to-date.
According to the Conference Board, 60% of CEOs expect the economy to contract in the next year and a half. Furthermore, JPMorgan’s Michael Feroli expects Powell to be “largely successful” yet considers recession distinct possibility.
