"Federal Reserve Plans Multiple Rate Hikes Amid Recession Fears"

The Federal Reserve is expected to hike interest rates in May, June, and July, with the possibility of further hikes in the fall, due to a tight labor market and sticky inflation. While the stock market expects a pause and eventual rate cuts, the Fed's dual mandate of 2% inflation and full employment may require continued hikes until the unemployment rate increases and asset price bubbles deflate. The excess wealth of U.S. consumers, particularly in home equity and stock market gains, is contributing to the sticky inflation. A deep selloff in the S&P 500 is expected, marking the beginning of Phase 2 of the bear market.