The Fed was criticized for being too slow in 2018, but more people are worried now that it is moving too quickly.
Investors are worried that the Fed is causing a recession. In addition, investors worry that the government cannot accurately determine supply and demand.
As a result, they fear the subsequent rise in interest rates will be too high. However, investors have been supportive of their raised interest rates so far.
Still, they are becoming wary because of the uncertainty of the full impact it could have on the economy.
Despite 225 basis point hikes in interest rates, the U.S. economy is still doing well despite warning signals signaling an impending recession being dropped by FedEx and World Bank officials.
Saying a minor correction may lead to a global economic downturn.
DoubleLine Capital CEO Jeffrey Gundlach warning stocks will drop 20% if an essential rate increase is 2.5% or higher.
As a result, the Fed needs to be mindful of raising high rates to reduce the risk of recession.