Fed tightening alters investors’ expectations, but will a recession ensue? ...Middle East

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Fed tightening alters investors’ expectations, but will a recession ensue?
Investing has been considered an expectations game ever since John Maynard Keynes famously compared the stock market to a beauty contest: The best strategy to win is to select the contestant who you believe the majority of people will pick rather than your personal favorite. But this analogy only goes so far in understanding what happens when markets are unusually volatile. Consider, for example, the profound changes in expectations that have occurred of late. At the start of the year, investors were upbeat about the prospects for the economy even though inflation accelerated in the second half of 2021. The main reason is they concurred with the Federal Reserve’s assessment that the

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