The Fed announced its third consecutive 75-bps hike on Wednesday as it tries to tame the stubbornly high inflation. Additionally, Federal Reserve Chairman Jerome Powell expressed his apprehensions over looming recession fears. He said, "No one knows whether this process will lead to a recession or, if so, how significant that recession would be."
Benchmark indices continue to suffer heavy losses amid deteriorating investors' sentiments. The S&P 500 has lost 20.5% year-to-date. Moreover, Economist Nouriel Roubini sees further rate hikes in both November and December and a recession occurring at the end of 2022 that could last all of the following year.
