The stock market witnessed heightened volatility last year due to lingering macroeconomic and geopolitical headwinds. While inflation cooled for two consecutive months, minutes from the Federal Reserve’s December meeting show that policymakers expect to continue increasing rates in 2023 and keep them higher for ‘some time’ until the 2% inflation target is met.
Bloomberg's monthly survey shows that economists placed a 70% probability for the US economy to tip into a recession this year, citing slashing demand forecasts and cutting inflation projections in the wake of the Fed’s aggressive rate hikes. Also, the head of the International Monetary Fund (IMF), Kristalina Georgieva, warned that 2023 would be a tough year, expecting one-third of the global economy to be in recession.
