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As Fed hikes rates, will markets rally?

When growth is slowing but the Fed continues to hike interest rates or refuses to cut them, stocks will fall

US Federal Reserve
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Photo: Bloomberg

Debashis Basu
No, there is nothing wrong with the heading, even though conventional wisdom tells us that when the US Federal Reserve hikes rates, stocks fall. The Indian market has been under great pressure ever since US inflation rates started rising late last year. After a long phase of zero interest rates, investors have been worried that the US Federal Reserve will hike interest rates. These fears came true in mid-January, when the Fed announced that it would adopt an aggressive stance to control interest rates after the consumer price index had climbed 7 per cent in 2021. This was the largest
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