The stubbornly high inflation is prompting the Fed to continue with its aggressive rate hikes. And the persistent monetary policy tightening is expected to eventually push the economy into a recession.
IMF spokesman Gerry Rice expects major economies, including the United States, to slip into recession by 2023. Therefore, corporate financials are expected to remain under pressure. Goldman Sachs analysts expect the S&P 500’s net profit margin to fall 25 bps in 2023.
