Fed Rate Cut: Here Are the Winners and Losers
Historically, stock investors have been big winners when the Fed slashes rates. Robert Johnson, finance professor at the Heider College of Business at Creighton University in Omaha, Nebraska, found that, from 1966 through 2023, the S&P 500 index returned 16.4% when the Fed lowered interest rates but only 6.2% when the Fed hiked rates.