The Fed's Predictions of a Recession

The markets are conditioned that when things go bad, the Fed's just going to come in a rate of a high grade. But can the Fed change the psychology of the market, but maybe not throw us into a deep recession? I think if you ask me, or most people a couple of years ago, what would happen if the Fed hike rates to 5%, I think we would all be very bearish on the economy and financial assets. We have the stock market basically going up every day for the past month.