The Fed’s aggressive rate hikes to tame the sky-high inflation have wreaked havoc across the market, and another 75 basis points hike is expected to be on the way this July. The IMF expects U.S. GDP to grow 2.9% in 2022, less than its 3.7% estimated earlier. Moreover, Goldman Sachs economists have projected unemployment rates to hit 3.7% by 2023.
Market volatility is rife, with benchmark indices expected to plummet further in 2022. The CBOE Volatility Index has gained 71.5% year to date, and investors must exercise caution before investing.
