Market View: How are markets expected to react to US Federal Reserve Chair Jerome Powell's testimony, and is enough time given for markets to react to the US rate hikes?

Your Way Home with Hongbin Jeong · Jun 24, 2022 · 10m

US Federal Reserve Chair Jerome Powell had given his most explicit acknowledgement to date that steep interest rate hikes could tip the economy into a recession, and it would be very challenging to achieve a soft landing. He also reiterated the Fed's resolve to get inflation back to the two per cent mark, adding that ongoing rate hikes will be appropriate to cool the hottest price pressures in four decades. But have markets been given enough time to react to the recent rate hikes, before the Fed is expected to further raise rates next month? And to what extent are markets expected to perform…