A Fed Rate Hike May Be in the Cards on Sept. 16, and 36 Years of History Says the Stock Market Won't Be Happy (at Least Initially)

New Fed Chair Kevin Warsh has prioritized price stability as inflation reaches a three-year high of 4.2%. There's a 50-50 chance the FOMC will raise rates on Sept. 15-16. Historical data shows stocks initially decline after Fed rate hikes, but recover strongly within a year—averaging 12.5% gains one year after quarter-point hikes.