In May, the Fed raised interest rates by 0.5% — the most in 22 years — to bring its latest target range to 0.75%-1%, from 0.25%-0.50% in March. The central bank of the world’s largest economy is expected to raise rates at all 5 of the remaining Fed meetings in 2022 to curb inflation. But raising rates impacts growth. The Fed’s focus on stabilising prices raises fears of a recession, just 2 years after the last Covid-driven contraction.A recession is defined by two straight quarters of economic contraction, and fears of stagflation are mounting. Recessions come in various forms and the market responds in starkly different ways — it can fall before, during or sometimes after the recession. The average fall in equity markets from peak to trough is close to 30% in the last 13 recessions, and the range is wide.  Financial markets are clearly questioning whether the Fed can...