The Fed Is Raising Rates the Slow Way. History Says the Pace Matters More Than the Hike.
Historical analysis shows that the pace of Federal Reserve rate hikes significantly impacts stock market performance. Slow hiking cycles (raising rates every other meeting) have resulted in average S&P 500 declines of 12%, while fast cycles (raising rates every meeting) produced steeper declines exceeding 16%. The Fed's current measured approach suggests a 'slow' hiking cycle, which could limit downside risk compared to rapid tightening scenarios.


