The CPI soared to a 40-year high of 8% in 2022, triggering one of the most aggressive campaigns to hike interest rates in the Fed's history.
The Fed lowered interest rates to a historic low of 0.
13%, and it also injected trillions of dollars into the financial system using quantitative easing.
The stock market doesn't always like rate cuts in the short termFalling interest rates can be great for the stock market.
Plus, the yield on risk-free assets like cash or Treasury bonds often falls in lockstep with interest rates, which pushes investors into growth assets like stocks instead.
That means the stock market would be falling at the same time the Fed is cutting interest rates once again.
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