Don't expect the Fed to rescue stocks in a recession: Macquarie economist

The US is headed for an even worse recession than the Federal Reserve is expecting – but the central bank still won't bail out stocks when that happens, according to Macquarie's top economist.

"Over the past 10 years the playbook has been 'buy the dip, and the Fed will always come riding to the rescue if it sees any economic weakness'," he told Insider."I'm not so sure that that will be the playbook for the next six to 12 months." The Fed has raised interest rates from near-zero to around 5% in just over a year in a bid to tame inflation, which had run at four-decade highs beforeEconomists have warned that its aggressive rate hikes are likely to drag on the economy – and the central bank's own policymakers have now, according to the minutes for its last meeting in March.

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