Stocks and Rates

It seems axiomatic that stocks rise when the Fed stops hiking interest rates. Not necessarily

Watching Alan Greenspan to find out which way he and his fellow Federal Reserve policymakers will move on interest rates is like waiting to see if the groundhog spots his shadow. No matter what the outcome, it's the anticipation, the unknown, that makes everyone so nervous. This time around, investors were hoping Greenspan & Co. wouldn't see inflation's gloomy outline. Instead, they'd proclaim that their efforts to cool off what has been a red-hot economy had succeeded.

That didn't happen. But the Federal Open Market Committee didn't vote to raise interest rates either. After six rate hikes since last June,...

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