Fed Rate Hikes Are Extremely Rare When Stocks Are This Beat Up
- Equity weakness has rarely seen monetary tightening since 1980
- But Powell has shown less sensitivity to financial markets
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Donald Trump’s hectoring aside, it’s exceedingly rare the Federal Reserve raises interest rates when stocks are behaving this badly.
In fact, were policy makers to follow through with their widely expected hike Wednesday, it would be the first time since 1994 they tightened in this brutal a market. Right now, the S&P 500 is down over the last three, six and 12 months, a backdrop that has accompanied just two of 76 rate increases since 1980.