Fed rate hike and stock market
The Federal Open Market Committee, or FOMC (the "Fed"), decided to raise the federal funds rate by 25 basis points at the conclusion of its December meeting. The Dow Jones Industrial Average shed That's because rate hikes are a response to higher inflation, and - so these investors argue - it's inflation that is bad for corporate profitability. Inflation is not readily apparent because everyone in the mainstream loves a rising stock market and that is where the inflation has rooted on this cycle.