How Will the Fed's Big Announcement Impact Your Investment Portfolio?

Big news is about to hit the stock market, and you don't want to be caught off guard when it happens. The Federal Open Market Committee (FOMC) is meeting this week to discuss monetary policy and interest rates, and there's a strong chance that stocks will react sharply to new information that comes out of that meeting. Make sure that your investment portfolio is set up to handle one of the biggest events in the financial calendar.

The stock market has been heavily influenced by interest rates over the past two years, and the Federal Reserve is the driving force behind interest rate changes.

Interest rates are often associated with relatively low-risk assets, such as Treasury notes and investment-grade corporate bonds. When interest rates are high, investors can generate decent rates of return without taking on much risk. However, periods with especially low interest rates force investors to look elsewhere for better returns.

Source Fool.com