Going by the current inflation and unemployment trends, the economy won't stabilize for a year at the very least. We have a very difficult situation. Inflation is high, unemployment is low. In 2008, we had low inflation and high unemployment, but not this time. So, with the tightening of interest rates, unemployment has to go high. With unemployment increasing, prices of goods will fall due to decrease in demand. At that time, hopefully inflation will go on a downward trend.

The expected inflation in US is around 2-3% and until we see inflation heading towards those numbers it's hard to say economy is stabilizing.

For comparison, the expected inflation in India is around 8-10% and that's why you don't see the pinch in the Indian economy right now even with the tightening of rates.

I am no predictor of the future, but more likely the US interest rates will hit the range of 10% before we start seeing any easing in inflation. Once we see unemployment numbers going up consistently for a couple of quarters that will be the sign of economic stabilization I think.