Investors’ rising concerns over multi-decade high inflation, a negative GDP rate in the first quarter, the Russia-Ukraine war, and supply chain disruptions have placed the stock market under immense pressure lately. These factors have also increased the odds that the U.S. economy will slip into a recession. Last week, the Federal Reserve raised interest rates by 50 basis points and indicated further hikes are forthcoming in response to inflation.
The U.S. inflation rate, which was up 8.5% year-over-year in March, could climb further on rising energy and food prices and intensifying supply chain disruptions caused by the Russia-Ukraine war and extended COVID-19 lockdowns in China.
