The Fed Just Raised Rates for the First Time in Three Years. History Says This Is What Comes Next.

Key Points The Federal Reserve just raised rates by 25 basis points, the first increase in three years. On average, the S&P 500 is higher a year after the start of a tightening cycle. Every situation is different, but rising rates aren't necessarily the type of environment to sell into. These 10 stocks could mint the next wave of millionaires › The Federal Reserve raised interest rates rapidly in 2022 and 2023 in response to inflation rising to a multi-decade high. And ever since then, investors have mainly wondered how quickly rates would fall, and when we entered 2026, most didn't feel that the rate cuts were done yet. However, after a significant increase in inflation this year, the Fed reversed course and tightened monetary policy. On Sept.