History Says the S&P 500 Is Headed for New Highs -- 1 Solid Index Fund to Buy Now and Hold Forever
The Federal Reserve has swiftly tightened credit conditions over the last 15 months in an effort to bring down inflation. The federal funds rate -- which affects other interest rates throughout the economy -- has increased 5 percentage points since March 2022, the most aggressive series of rate hikes since the early 1980s.
Tighter credit conditions caused a significant deceleration in economic output last year, and some experts are forecasting a recession this year.
But there is a silver lining to the situation. Fed chair Jerome Powell recently said the rate hikes might be over, or at least winding down, and that portends better days for investors.
Source Fool.com