The Federal Reserve continued its battle against inflation by increasing its benchmark interest rate by 50 basis points to the highest level in 15 years. Furthermore, the Fed signaled that it will raise the key interest rate to 5.1% in 2023, higher than its previous projection, with no reductions until 2024.
Investors have become increasingly concerned that the Fed’s resolve to keep raising interest rates could slide the economy into a recession. The probability that the United States will fall into a recession by November 2023 came in at 38.06%, a significant increase from the previous month's projection of 26.03%.
