So, they hiked the rates by 0.5%, which most in 22 years and.......the stock market skyrocketed. Seems investors figure a large hike is good for inflation, and probably that there won't be another hike as son as predicted. DOW = +880 NAS = +330 S&P = +118
Just to point out, when we talk about "the Fed increasing rates", that does not actually mean the Fed is actively doing anything to cause the rates to go up. Rather it just means that the Fed is stepping back and not actively continuing to keep rates down. It gets expensive for the Fed to try to manipulate interest rates and causes inflation. (They have to lend out money at artificially subsidized lower interest rates) The Fed is coming under "pressure" to stop keeping interest rates down because of all the inflation. That makes it more expensive, difficult, and impractical to try to keep interest rates down.
