The Fed has increased the Fed funds rate quite a bit but they’ve only shrank their balance sheet by 5% and things are already breaking

by BoatSurfer600

Source: https://markets.businessinsider.com/news/stocks/recession-warning-economic-outlook-inverted-yield-curve-fed-rate-hike-2023-1

Morgan Stanley Warns US equities could slump another 22% from current levels — Goldman’s Kostin also sees 2023 earnings estimates as too high (Bloomberg)