Markets Must Have Their Day of Reckoning

Source: Foundation for Economic Education
by Dan Sanchez

“A worse-than-expected inflation report released Friday spooked the Federal Reserve into contemplating steeper-than-expected interest rate hikes on Monday. That in turn spooked traders into a stock sell-off, driving the S&P 500 into a bear market that same day. And that in turn is spooking everyone about the prospect of an imminent recession. And the Fed just confirmed investor fears when it ‘approved the largest interest rate increase since 1994 and signaled it would continue lifting rates this year at the most rapid pace in decades …’ as The Wall Street Journal reported on Wednesday. Scary as the prospect may be, the economy is long overdue for a crash. And the more we postpone that Day of Reckoning, the worse it will be.” (06/15/22)