Thus far, 2022 has been a bumpy ride for the stock market and economy. Investing in the market is more challenging when you have high inflation, rising interest rates, and supply constraints caused by the Ukraine conflict and lockdowns in China.
It’s hard to succeed in the market when you’re feeling the higher prices at the grocery stores, gas stations, and others. The Fed is resetting its monetary policy to a contractionary one to tighten the economy.
They are raising their interest rates (i.e., fed funds) to cool down the highest inflation in 40 years. Some investors fear the Fed may push us into a recession, which is not suitable for investing.