Stocks Slump 3% As Worries Grow over Higher Interest Rates
SnopesJUL 2022
The Spin
Narrative A
Turbulence is expected in the market, and the recent volatility isn't surprising; nor does it suggest that the Fed is wrong to tighten. Markets are simply trying to make sense of a policy environment that it hasn't seen in decades.
Narrative B
While markets are no stranger to volatility, the whiplash over the last two days is unparalleled. Once an anchor of stability for the market, the central bank is now its chief antagonist. Although the Fed Chair expressed confidence, the risk of a recession is a threat that investors can't ignore.
Metaculus Prediction
There is a 50% chance that the rate of inflation in the US will be at least 5.80% in 2022, according to the Metaculus prediction community.
