Topline
Ahead of a pivotal interest rate decision on Wednesday, the Federal Reserve faces a novel dilemma: stubbornly high inflation amid massive uncertainty over a banking crisis that could force a preemptive hiking pause—a prospect some analysts fear could make a potential recession worse than previously feared.
Key Facts
“Unfortunately, the Fed is boxed in,” Morgan Stanley Wealth Management investment chief Lisa Shalett wrote in a Monday note to clients, cautioning current investing challenges—including high inflation and a banking crisis—have set off a dynamic that “likely raises the odds of an imminent recession.”
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