Will the Federal Reserve Trigger a Bear Market? History Has Good and Bad News for Investors
The Fed is likely embarking on a rate hiking cycle, which has often resulted in recessions and bear markets.
The Federal Reserve has recently raised its benchmark interest rate, a move that many had anticipated but not all had anticipated. Fed Chair Kevin Warsh explained that the decision came after the committee waited to assess the reasons behind persistent high inflation. While the rate hike might not be a one-time occurrence, the market indicators point to a series of hikes to come. Fed futures markets are forecasting two to three more quarter-point increases by the end of 2027.
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