The Fed Could Be About to Raise Rates for the First Time Since 2023. Here's What History Says Happens to Stocks Next.

Key Points The S&P 500 typically declines during the first three months of a new rate-hike cycle. However, the S&P has historically risen over the next year. The Fed's aggressiveness in raising rates could make a big difference in what happens with stocks. 10 stocks we like better than S&P 500 Index › Over three years. That's how long it's been since the Federal Reserve last raised the federal funds rate, the interest rate that commercial banks charge each other for overnight borrowing. This stretch seems likely to end when the Federal Open Market Committee (FOMC) announces the outcome of its latest meeting on Wednesday, Sept. 16, 2026.