If Kevin Warsh Keeps Rates Elevated, These 2 Stocks Are Built to Handle It
The Federal Open Market Committee recently raised interest rates for the first time in three years.
Overview
After much anticipation, Federal Reserve Chairman Kevin Warsh and the Federal Open Market Committee (FOMC) raised the benchmark overnight federal funds rate by a quarter point, bringing the target range to 3.75% to 4%. It was the first time in three years that the FOMC raised rates. The vote was unanimous.
The future remains murky, but the market currently expects at least one more rate hike this year and potentially two, according to CME Group's FedWatch tool.
Details
Furthermore, the FOMC's recent dot plot from its September meeting, which shows each member's expectations for where the federal funds rate will be in the future, indicates that most members of the committee don't expect rate cuts until at least 2028.
Source
Originally published at www.fool.com.