Stocks tumble after Fed hikes interest rates

Stocks bounced back by 1.5% late Wednesday after the Federal Reserve announced an interest rate increase, but the reversal proved short-lived.

The stock market returned to its previous downward trajectory Thursday by sliding roughly 3.3% across the board.

The dip carried across national borders as well as oceans: Europe also suffered dives in stocks as central banks there upped interest rates.

What’s the market forecast? Economists are predicting more market swings as investors remain uncertain that the Fed can slow inflation without driving the economy into a recession.

Economists at Deutsche Bank have moved up their prediction for the start of a U.S. recession to mid-2023. Decreasing unemployment is helping hold up the economy.

This story originally appeared in WORLD. © 2022, reprinted with permission. All rights reserved.