Fed Hike Hype
Higher interest rates will keep the markets volatile
When the Federal Reserve raises interest rates, financial markets can turn volatile. The hikes in the early 2000s bore this fruit and so did the initial efforts to end quantitative easing (QE) and raise rates in the mid-2010s.
Now, the Fed has finished tapering its pandemic-era QE program and started its rate hike cycle, so the markets are by no means finished with their current bout of volatility.
But what’s next? Well, traders can use the Gartner Hype Cycle to see how the Fed’s tightening may play out. (For another take on the cycle, see The Technician, here.)
The hype cycle maps out a pattern of events that typically occurs when a product, event or idea moves from...
