Recent actions by the Federal Reserve have heightened concerns about stagflation as they project a hawkish outlook for 2025. Plans for only two small rate cuts triggered a significant selloff in the S&P 500, which experienced its largest one-day drop since August. This volatility contributes to widespread anxiety among investors. Additionally, the Volatility Index saw one of its largest daily increases in history, reflecting market apprehension. Analysts encourage investors to remain cautious and develop strategies to weather these tumultuous conditions. Understanding the implications of these economic signals will be crucial for those navigating the current market landscape.