The stock market’s path forward in today’s interest rate environment

Interest rates play a crucial role for equity investors. “The Fed isn’t returning to the pre-2022 ‘zero interest rate’ environment,” says Haworth. “Inflation may stabilize at a higher level, around 2.5% to 3.0%. If that happens, the Fed may ultimately set the federal funds target rate close to 3.0%.” The fed funds target rate currently stands at 4.25% to 4.50%. Given present interest rate trends, Haworth believes strong economic fundamentals and solid corporate earnings keep equities well positioned for growth.

As you evaluate your situation, prepare for possible short-term stock price fluctuations. Stocks should…