Fed hikes rates to 3.75-4%, investors eye market response
The Federal Reserve lifted the federal funds rate to a target range of 3.75%–4% last month, a quarter‑point increase that traders expect to be followed by another hike before year‑end.
Historical data shows that periods of rate hikes often coincide with S&P 500 weakness, as seen between 1965 and 1995, and again from 1995 to the COVID‑19 shock, indicating a potential market reaction.
Investors should consider holding quality stocks to capture gains as the economy adjusts, with the risk of a pullback mitigated by the likelihood of a bullish rebound.
Read the full story at The Motley Fool.
