The first trading day of 2022, January 3, seemed to be no different from the previous days in the stock market upswing that started while Barack Obama was still in office. The S&P 500 reached a new peak. The stock of Tesla, the firm that revolutionized the auto industry and made many investors wealthy, increased 13.5 percent, almost reaching its all-time high.

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That Monday, it turned out, marked the end of a market that had gone primarily in one direction for more than ten years, with the S&P 500 gaining by more than 600% since March 2009.

Just two days later, the Federal Reserve released the minutes from its previous meeting, a common occurrence on Wall Street. These minutes showed that the central bank's decision-makers were so concerned about inflation that they considered possibly needing to speed up the rate of interest rate increases.

The S&P 500 fell 1.9 percent as a result of how severely investors reacted, and a market sell-off that started later in the year set the tone for the remainder of the year.

Financial markets have seen a generational transition in the past year as a result of the Fed's repeated interest rate increases in an effort to stem the worst inflation in decades. Its efforts are starting to bear fruit: The rate of price growth has recently slowed.

But the Fed's dramatic measures to slow the largest economy in the world have had far-reaching effects.

The year marked the conclusion of a period of low interest rates that made borrowing affordable and encouraged investors to take risks in search of rich returns on the stocks of emerging tech companies, cryptocurrencies, and debt markets.

Both the S&P 500 and Tesla have fallen from the heights they hit on January 3. The S&P 500 had a worse finish on Friday and down 19.4% for the year, which was its worst annual performance since 2008. Since the collapse of cryptocurrency behemoths like FTX, debt has become more expensive.

However, the Federal Reserve has stated that its work is far from done even as the American economy appears to be headed for a probable recession. Even while inflation is beginning to decline, it is still far too high, and future increases in interest rates portend more suffering.

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