A study on US recessions over the past 50-odd years by Nirmal Bang suggests that recessions caused by the Federal Reserve are not uncommon. A saving grace is that recessions caused by Fed tightening are usually shallow and short-lived, and have lasted 1-3 quarters with the average decline in GDP well under 1 per cent. Here’s how a US recession may impact India.
Monetary policy expectations impact stocks more than rate moves: RBI paper
Equity markets are impacted more by the expectations of future monetary policy than the policy rate surprises on the day of announcement of the policy