We all make mistakes – but the Federal Reserve may make a bigger one than most. That could mean another difficult year for the stock market in 2023.
These concerns came to the fore last week following the Federal Open Market Committee’s December meeting. The Fed did nothing to surprise the market, raising interest rates by half a point, as everyone had expected, and proposing a final rate of just over 5%, a level to which investors had been slowly adjusting. But the dot chart reflected the Fed’s belief that rates will get high and must stay high, while Chair Jerome Powell continued to adopt a hawkish tone.
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