Sick of rising interest rates yet? Better get cozy because there’s a lot more where they came from.

Yesterday, Fed Chair Jerome Powell delivered words that broke investors more than Joel’s final words, “it’s okay baby girl, I got you,” did to The Last of Us viewers.

Difference is JPOW doesn’t got us. In his remarks yesterday, he warned:

• “The latest economic data have come in stronger than expected.”
• “The ultimate level of interest rates is likely to be higher than previously anticipated.”

This sent markets tumbling and opened the door to a larger interest rate hike.

With several important reports and dates coming, the stakes couldn’t be higher over the next two weeks.

1/ Feb. jobs data (Mar. 10). The Fed is looking for the unemployment rate to rise — signaling that the economy is slowing and higher rates are working as intended.

+ The Last of Us finale (Mar. 12). Can they top ep8?

2/ Feb. inflation data (Mar. 14). If last month’s inflation comes in hotter than expected, the Fed could raise interest rates by a larger 0.50 percentage point hike.

3/ Fed meets (Mar. 21-22) with a decision on how much they’ll raise interest rates.

Expecting a market recovery in 2023? Might want to lower your expectations. Investors are in for more volatility ahead.