Is the U.S. headed for a recession? Stocks drop nearing bear market

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The Dow Jones has fallen 16%, and the NASDAQ is down roughly 30%. The S&P 500 is down more than 20% from its January 3 peak.

Federal Reserve is expected to raise interest rates again this week— by 0.75%— to try and get the crisis under control.

It’s something the federal government hasn’t done since 1994, and a sure sign the situation has gone from bad to worse. The hope is that higher interest rates will lead inflation to, you know, cool down. That is essentially what the Fed is trying to achieve right now," says Oren Klachkin, Lead Economist at Oxford Economics USA.DOW drops 600 pointsAs stocks drop, food costs, rents, and gas prices continue to soar.

 

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