Here’s what the market did the last two times the Fed raised rates
"Here’s what the market did the last two times the Fed raised rates"
in the news Here’s what the market did the last two times the Fed raised rates? What this all about..... See below.
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Sentiment Trader can see The last time the Fed raised short-term interest rates, stocks rallied. On Dec. 16, 2015, when the Fed boosted rates by 0.25 percent, the S&P 500 rose 1.45 percent, while the Dow Jones industrial average climbed 1.28 percent. The enthusiasm was short-lived, however, and the S&P sank more than 11 percent by mid-February.
The 2015 rate hike marked the first time in more than nine years that the Fed decided to boost the range for its key rate, which currently stands at 0.25 percent to 0.50 percent. Before that, the Fed last raised rates in June 2006. Markets also rewarded the news then, with the S&P jumping 2.2 percent and the Dow rising 2 percent, as the Fed strongly hinted that its long string of 17 rate hikes could be coming to a close.
But after 12 months, what happened, and what sectors did the best 12 months after the FED raised rates? Its and interesting questions some of our members keep asking, so here is our response. History could repeat here. So we will give you a little look back in history to help you with your investments.
UPDATE :-
The Federal Open Market Committee raised its target range from 0.25 percent to 0.5 percent to a range of 0.5 percent to 0.75 percent. The overnight funds rate currently sits at 0.41 percent. In addition to approving the much-expected increase, the FOMC also indicated a higher rate than projected back in September when it last released the quarterly look ahead. The committee now expects three rate hikes in 2017, two or three in 2018 and three in 2019.
The Fed projecting three rate hikes for next year "did catch people off-guard, but but [the Fed] did say four rate hikes for this year, anyone who makes decisions on that is a bit silly because what we've seen with Janet Yellen is she let's the numbers tell the story."
It's all about reality setting in, and we have to expect more volatility and less momentum buying."
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