Investors see a US recession ahead, sticky inflation, and more rate hikes from the Fed, JPMorgan says

• Investors say high inflation levels won't allow the Fed to pull back on rate hikes, per JPMorgan. 
• Monetary tightening, along with profit-margin compression, will push the economy into a recession.
• "We do not see inflation providing the Fed an option for easing before a recession takes hold, and we maintain a risk bias toward a recession."

Investors are preparing for a recession and more interest rate hikes if inflation levels continue to stay high, according to JPMorgan.

Based on its survey of investors, the bank found that they expect monetary and credit tightening, along with profit-margin compression, will push the economy into a recession. Almost 90% of respondents see a recession materializing by the first quarter of 2024.