From what I understand, the stock market generally goes down after the Fed raises rates. From my understanding this is because higher rates make it more expensive to borrow money for various loans: business, personal, home, etc. This in turn affects economic activity across sectors, as well as makes it more expensive to borrow money on margin for trading. (Please correct me if I'm wrong).
However, the Fed recently raised rates again this past Wednesday by another 75 points. Consequently, we saw an increased in the markets.
Why?
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