The Fed Could Be About to Raise Rates for the First Time Since 2023. Here's What History Says Happens to Stocks Next.
Investors should brace for short-term volatility if the Fed increases rates.
Overview
Over three years. That's how long it's been since the Federal Reserve last raised the federal funds rate, the interest rate that commercial banks charge each other for overnight borrowing.
This stretch seems likely to end when the Federal Open Market Committee (FOMC) announces the outcome of its latest meeting on Wednesday, Sept. 16, 2026. Going into the FOMC's announcement, CME Group's (NASDAQ:CME) FedWatch estimated the probability of a rate hike at a whopping 92.7%. FedWatch's odds of rate increases at the FOMC's October and December meetings are even higher.
Details
What could happen with stocks if the Fed indeed raises rates for the first time since 2023? Here's what history says.
Source
Originally published at www.fool.com.
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