The stock market closed lower Tuesday, but the Federal Reserve Board’s decision to “hit the brakes hard” strikes us as a good thing, both for the economy in general and for investors in the stock market. You can expect to see a 3% Fed funds rate by early next year, but also rate cuts by the end of 2023 as recession risks rise.
If successful, this will prevent runaway inflation, such as the U.S. experienced in the 1980s. That would be a very good thing.