The U.S. economy is teetering on the brink of a recession as it faces the double whammy of red hot inflation and consecutive rate hikes. The Fed raised interest rates four times this year, and the policymakers are planning on another large hike this September, aiming to bring down inflation to 2%.
On the other hand, U.S. GDP fell 0.9% at an annualized pace for the second straight quarter from April to June, raising the odds of a recession. The stock market ended the last week in a volatile trading session as the July job report came in better than expected, which could prompt the Fed to continue its rate tightening campaign.
