The Fed Could Hike Interest Rates Again in 2026. Here's What Investors Should Do Right Now.
There's some big news on the radar that could affect stock prices, but how, and for how long?
On October 28th, the Federal Reserve's Open Market Committee will decide on the federal funds rate. Despite a quarter-point increase in September to combat lingering inflation, futures data from CME Group suggests there's a 90% chance the committee will maintain the current target range of 3.75% to 4%, with only a 10% chance of another quarter-point hike.
The Fed has another opportunity to raise rates on December 9th, with interest rate futures indicating a 76% chance of a quarter-point increase and a 9% chance of a half-point increase to between 4.25% and 4.5%. Higher interest rates can negatively impact stocks, but periods of rate hikes often see market gains in the short term, so staying invested is advised.
Instead of making a hasty decision based on this potential rate hike, investors should focus on identifying and holding high-quality stocks.
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