Fed’s commitment to curb the multi-decade high inflation with its aggressive rate hikes has kept investors worried about a possible recession. Senator Elizabeth Warren warned that the U.S. would suffer a devastating recession if the Fed did not ease its rate hikes as monetary tightening cannot control all the factors contributing to the elevated inflation.
On the other hand, the stock market saw a rally lately, and the major indices seem on track for a winning week and the best month in 2022. The rally was driven by investors’ optimism that the Fed might end its aggressive rate hikes soon.
