How the Fed's Historic Interest Rate Hike Affects Your Wallet: Credit Cards, Mortgages, Stock Portfolios And More
Portfolio Pulse from AJ Fabino
The Federal Reserve has raised the federal funds rate to 5.25%-5.5%, the highest since February 2001. This decision impacts consumer and personal finance, including higher borrowing costs and tougher credit approval. However, it also increases yields on cash left in banks. The rate hike has also influenced the stock market, with the SPDR S&P 500 ETF Trust (NYSE:SPY) up over 20% since the beginning of 2023.
July 27, 2023 | 5:22 pm
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POSITIVE IMPACT
The SPDR S&P 500 ETF Trust (NYSE:SPY) has risen over 20% since the beginning of 2023, despite the Federal Reserve's rate hike.
The Federal Reserve's rate hike typically discourages risk-taking and can cause market volatility. However, the SPDR S&P 500 ETF Trust (NYSE:SPY) has performed well, rising over 20% since the beginning of 2023. This suggests that investors may be confident in the strength of the broader market, despite higher interest rates.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80