The Federal Reserve Just Raised Interest Rates for the First Time Since 2023. Here's What History Says Happens in the Stock Market Next.
Key PointsHigh inflation rates pushed the FOMC to raise the target federal funds rate at its September meeting.
The Federal Reserve, led by Chairman Kevin Warsh, has raised interest rates for the first time since 2023. Inflation has continued to rise, moving further away from the Fed's 2% annualized target. At their third Federal Open Market Committee (FOMC) meeting, Warsh and the committee increased the target federal funds rate by 0.25%.
This move aims to curb inflation, but may also impact corporate earnings and job growth. The rate hike is the first in a new cycle since the beginning of 2022. The impact on the S&P 500 is expected to be significant.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
