Fed Pressure and Recession Fears In 2023, Wall Street has entered a ‘bear market’ phase: Here’s what it means

The‘inflation’ At its peak in 40 years, feed it He’s getting ready for the third on Wednesday high rate Consecutive at least 50 basis points, the war in Ukraine The slowdown in the Chinese economy. The party is over: with a high probability that the United States will join next year Recession Investors paint the consequences. The 10-year Treasury yield jumped to 3.29%, the highest since 2011. Wall Street opened the week with further losses, and so did Standard & Poor’s 500 -After Nadsaq – It’s down to a level”alcohol market“(Bear Market), this is bearish: registered decrease of more than 20% from the previous peak recorded on January 3. The Dow Jones Industrial Average is down more than 16% from its most recent peak. We are no longer in revision physiological, but in a new stage characterized by Gradual decline in asset prices Pessimistic financial forecasts.

in the stock market lStandard & Poor’s 500, the main measure of health on Wall Street, it lost 3.55% and the Nasdaq 4.23%. The Bitcoin It fell another 12% and fell below $24,000 early Monday. By the end of 2021, it touched $68,000. The outlook for the economy as a whole is bleak. The financial times The results of a survey of 49 economists in collaboration with the Chicago Booth School of Business were released Monday morning. 38% of respondents expect to enter a recession In the first half of 2023 and another 30% a little later, in Six months later. Lawrence Summers“History teaches us that when there is inflation as high as this and low unemployment, a recession is likely in the next two years,” recalls the former Clinton administration secretary of the Treasury.

The Fed is expected to announce pressure on Wednesday half a percentage point Interest rates could then accelerate in July with a 75 basis point hike.
The rising inflation of 8.6% makes it even more aggressive against the extravagant life gnawing at Americans’ wallets. The run in prices is increasingly cornering the central bank, rejecting the hypothesis of the economy’s soft landing. for Jerome Powell The next meeting, and especially the upcoming press conference, is a new test to pass. Some analysts believe he will be surprised early Wednesday with a 0.75% rise to show his commitment and determination to fight inflation. However, doing so would mean surprising Wall Street and breaking the mold, threatening confidence in the central bank’s predictability.

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