Ask A Fool: How Will The Fed's Rate Hike Affect My Investments?

newsfeedback@fool.com (Matthew Frankel), The Motley Fool
Fri, 12/15/2017 - 12:01pm

The Fed's rate hike doesn't have a direct effect on the stock market, or on bond values. So, the answer isn't as simple as saying, "Rising interest rates will make stocks drop."But there is often an indirect effect. When the Fed raises rates, it makes it more expensive for banks to borrow money, which in turn gets passed on to consumers in the form of higher rates on things like credit cards, home equity loans, and more.

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Topics:  rising   fed   affect   rates   stock   money   effect   consumers   borrow   raises   
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