Fed's Hawkish Pivot: Rate Hike Signals More Pain Ahead

The Federal Reserve delivered its first rate hike in over three years on Wednesday, a unanimous 25 basis point increase that caught many off guard. The move signals the central bank's resolve to tackle stubborn inflation fueled by the ongoing Iran war and persistent economic resilience. Markets initially slipped but have since rebounded, suggesting investors are betting the Fed has the situation under control.

Headwinds

The path forward is fraught with challenges: -...