After 17 consecutive interest rate hikes during the past two years the Federal Reserve’s open market committee decided on August 8 to leave the federal funds rate unchanged at 5.25%. While stocks immediately rallied in response they fell back as it became clear that inflationary pressures persist and they could prompt more rate hikes in the future. What does this mean for markets and investors? Wharton finance professor Jeremy Siegel told Knowledge at Wharton that Fed chairman Ben Bernanke met expectations and ”meeting expectations is very positive for stocks.”
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Knowledge at Wharton