
The BlackRock Investment Institute's midyear outlook warned of increased market volatility as the Federal Reserve, and other central banks are trying to rein in inflation and avoid a steep economic downturn. The CBOE Volatility Index (VIX) increased more than 4% after Tuesday’s market close.
The Bureau of Labor Statistics' Consumer Price Index (CPI) showed a year-over-year increase of 9.1% last month, up from the prior 40-year high of 8.6% in May. As analysts fear that the Federal Reserve could choke growth with its aggressive policy tightening, the market volatility is not expected to ease anytime soon.