Fed Chair Kevin Warsh and the FOMC Just Hiked Interest Rates, and 36 Years of History Make Clear What Comes Next for Stocks
The Federal Reserve has undertaken six previous rate-hiking cycles since 1990, with each yielding highly predictable results for the stock market.
Overview
The big day that seemingly everyone had circled on their calendar for weeks, Sept. 16, lived up to the hype.
On Wednesday, Sept. 16, Fed Chair Kevin Warsh and the 11 other voting members of the Federal Open Market Committee (FOMC) raised the federal funds target rate by 25 basis points to a new range of 3.75%-4.00%. The first interest rate hike since July 2023 wasn't well-received by Wall Street, with the time-tested Dow Jones Industrial Average (DJINDICES:^DJI) tumbling more than 1%, and the broad-based S&P 500 (SNPINDEX:^GSPC) and innovation-powered Nasdaq Composite (NASDAQINDEX:^IXIC) edging lower.
Details
While Warsh's and the FOMC's actions are bound to raise questions and incite worry on Wall Street, nearly 36 years of history make clear what comes next for stocks.
Source
Originally published at www.fool.com.