Interest Rates Are Likely to Rise This Year. Here's What That Could Mean for the S&P 500
The last time interest rates rose quickly, the market went into a tailspin.
Overview
With Kevin Warsh's first Fed meeting in the books, there's a bit more clarity about what the future may hold for interest rates and Fed policy. While some investors feared Warsh might lower interest rates quickly simply to appease the president, that hasn't happened.
Not only have rate cuts not occurred, but Warsh is also committed to getting inflation back to 2% (currently it's at more than 4%), suggesting the Fed may once again raise interest rates in the near future, as doing so could help bring inflation down.
Details
What does this mean for the S&P 500 (SNPINDEX: ^GSPC) and the overall stock market?
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.