Indexes extended their losses on Thursday as markets digested the latest Fed minutes, where Federal Reserve officials “generally agreed” to cut up to $95 billion a month from the central bank’s balance sheet to combat surging prices.
In light of the Fed’s hawkish stance on inflation, CenterSquare Investment Management Chief Strategist Scott Crowe sees a sizable decline in economic growth levels ahead.
“I think there is little doubt that we are at the beginnings of a significant slowdown in economic growth,” Crowe told Yahoo Finance Live. “And that means that if there’s one word to sum up how the markets are going to behave this year, it’s ‘challenging.’ And it’s challenging because we have a picture that includes persistently high inflation. We are just at the beginning of a rate hiking cycle.”
