Last year was challenging for the stock market, with high inflation worries and the Federal Reserve tightening interest rates aggressively. However, these efforts now appear to be bearing fruit, with the economy spurning to cool down, as evidenced by less-than-expected wage growth in the latest employment data.
However, although inflation seems to be cooling off, it remains historically elevated, which is predicted to hike rates further. Market experts say there is a 7-in-10 probability that the U.S. economy will slip into a recession in 2023, slashing demand forecasts and trimming inflation projections in light of tremendous interest rate increases.
