US Stocks Face Near Term Weakness As Fed Hikes Rates
History suggests US equities may face near-term weakness as the Federal Reserve begins raising interest rates to combat inflation. Analysts expect a shallow hiking cycle with markets eventually recovering based on economic fundamentals.
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United States equities face a median decline of 2.6% three months after a Federal Reserve rate hike cycle begins, historical data shows. The S&P 500 has gained 12% this year despite tighter monetary policy. Investors are weighing how aggressively the central bank will raise borrowing costs to tame inflation.
