On Wednesday, the Federal Reserve raised interest rates by 75 basis points for the fourth consecutive time. However, a “step-down” in the pace of increases in the future seems plausible. Keith Lerner, co-chief investment officer at Truist Advisory Services, claimed, “The market is starting to believe that there is an endgame in sight for this huge global tightening cycle.”
On the other hand, according to a Bloomberg probability model, there’s a 100% chance of recession by October 2023. Moreover, earlier this month, the United Nations warned that the world is “on the edge of a recession,” and they fear the possible global slowdown could inflict worse damage than the financial crisis in 2008 and the Covid-19 shock in 2020.
