For U.S. traders, 2023 could seem like two yrs wrapped in a person, with the stock market place to start with falling in anticipation of a economic downturn, only to rebound as the outlook increases towards 2024. The a person constant: The Federal Reserve will simply call the shots, considerably as it did this calendar year, as it strives to suppress rampant inflation and restore rate stability.
Stocks could continue on sliding as 2023 unfolds, particularly if the Fed’s interest-fee hikes push the economic system into a recession. Then once more, a far more modest financial slowdown might be enough to lower price tag development to a amount in the vicinity of the central bank’s annual focus on of 2%.
