The Fed needs to get past peak inflation to be successful
Changing interest rate expectations have driven volatility in the stock and bond markets. From the Fed’s December to March meetings, expectations changed from three to possibly 10 rate hikes in 2022, and expectations have continued to increase following May’s 8.6% inflation report. This led investors to reprice stock investments based to reflect expectations for more aggressive Fed actions. The Fed needs to get past peak inflation to be successful.