"The Fed would shock the markets if it fails to finally deliver on the 50 BPS rate hike. Starting the process of balance sheet runoff is equally essential to not harming their already compromised credibility," says Danielle DiMartino Booth. She also discusses whether a recession is possible. "The soft landing window has likely closed as evidenced by Amazon, the nation’s second largest private employer, announcing it had overbuilt warehouse capacity and over-hired as a result. Inventories are rebuilding across the industrial sector which takes further replenishment of stocks out of the future GDP growth picture," DiMartino adds.