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Markets adjust to hawkish reality, fear grips housing market and Covid not over.

Markets are adjusting to the new, more hawkish reality after the Federal Reserve raised rates 75 basis points this week and lifted projections for where the base rate will be this year and next year. Goldman Sachs has cut its year-end target for the S&P 500 to 3,600 from 4,300, citing higher interest rates. The forecast is skewed to the downside because of rising odds of a recession. The Fed's hardening fight against inflation has affected all assets, with investors asking, why buy now when things could get cheaper still? Such an intense pace of tightening may be hard to escape. Nations are being forced to go it alone in erecting defenses against the dollar’s relentless strength.