While it is broadly expected that the pace of interest rate hikes may be dialed down to 50-basis points this month, concerns over terminal interest rates being higher than expected and its effect on the U.S. economy have kept markets on edge.
November’s employment statistics and service sector growth signaled enough resilience in the economy to keep the Fed worried and markets volatile. Obsessed with the increasing probability and the severity of an economic downturn due to interest rate hikes, the S&P 500 registered five consecutive sessions of losses until Wednesday.
