The Fed plans aggressive interest rate hikes to control surging inflation. The Fed aims to prevent consumers and businesses from spending by making borrowing more expensive, cooling demand, and keeping prices under control.
Economists are concerned that if the Fed raises the interest rates too quickly and aggressively, it might push the economy into a recession. Amid a recessionary environment, consumer staple stocks have been known to perform better as these companies withstand economic slumps better than other industries because of the inelastic demand for their products.
This is why today I’m going to analyze three prominent consumer staples stocks, which are well-positioned to withstand an economic slump.
The post Look to Consumer Staples Stocks on Mounting Recession Fears originally appeared at StockNews.com.