The stock market rallied after signs of decelerating U.S. inflation prompted bets that the Fed would now raise interest rates at a slower pace. However, according to Neel Kashkari, President of Minneapolis Federal Reserve Bank, the Fed is “far, far away from declaring victory” and needs to raise rates much higher — 3.9% by year-end and 4.4% by the end of 2023.
The worries over the economy sliding into a recession due to the Fed’s continued rate hikes and the ongoing geopolitical tensions are expected to keep the stock market highly volatile.
