Higher rates stand to slow the economy, by raising borrowing costs for consumers and companies, and also could pose a headwind for the performance of stocks and other risk assets.
Higher rates stand to slow the economy, by raising borrowing costs for consumers and companies, and also could pose a headwind for the performance of stocks and other risk assets.
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In a significant move, the Federal Reserve has raised interest rates for the first time since 2023, marking a shift towards a hawkish stance on inflation management. This unanimous choice has led investors to brace for more potential rate increases, generating ripple effects across asset markets. Following a surge, bond yields have retracted. Yet, the future trajectory of the Fed's monetary policy remains uncertain.
