By Lewis Krauskopf
NEW YORK, Sept 24 (Reuters) – History suggests US stocks are poised for weakness as the Federal Reserve starts raising interest rates, but investors trying to gauge the ultimate market fallout are focused on how aggressively the central bank hikes and the economy’s response.
In an effort to cool off persistently high inflation, the Fed last week increased its benchmark rate for the first time since 2023, which should increase borrowing costs. The US central bank signaled it expects to follow the quarter-percentage-point hike with another increase by the end of the year. Investors are factoring in more hikes in 2027.
“Our bottom line is (whether) the Fed’s actions have an impact on the market’s…
