Why a Fed rate-hike pause may not be as great for stocks as Wall Street hopes
By STAN CHOE
AP Business Writer
NEW YORK (AP) — To Wall Street’s relief, the end appears in sight for the Federal Reserve’s sharp hikes to interest rates. The hikes are supposed to lower inflation, but they also hurt the economy and drag down stock prices. History suggests that if the Fed pauses next month, as is widely expected, stocks may be set to rise in the ensuing months. That’s what happened the last several times the Fed made its final increase in a rate-hike campaign. But inflation is still high. That suggests a Fed pause may not be so great for stocks this time.
