Possible scenario
Renewed Tightening Cycle
15% Chance
A less likely but plausible path is that inflation persistence proves broad enough to force more than one hike. This would mark a more material policy shift, tightening financial conditions and increasing recession risk.
Initial impacts
- Riskier companies' borrowing costs Up
- 10-year Treasury yield Up
- Market volatility Up
Secondary impacts
- Technology -1.8%
- Consumer Cyclicals -1.6%
- Industrials -1.3%
Portfolio impact
S&P 500-1.4%
Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.
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