---
title: "The impact of US interest rate rises on stocks"
url: https://arb-maker.com/archives/4795/
description: "The impact of US interest rate rises on stocks Posted by Admin on Mar 16, 2017 in ArbMaker News! | No Comments Yesterday the US central bank raised its…"
published: 2026-08-10
updated: 2026-08-10
---

# The impact of US interest rate rises on stocks

Published 2026-08-10

Posted by Admin on Mar 16, 2017 in ArbMaker News!

Yesterday the US central bank raised its base rate – the federal funds rate – to 1% continuing the move away from a ZIRP (zero interest rate policy). While exceptionally low by historical and absolute standards 1% is clearly the start of a larger tightening cycle.

Intuitively one expects more expensive credit to be a negative for equities. So why the rally? It is all about context:

That said, there is perhaps an ‘unknown unknown’ in the current story: will the unwinding of quantitative easing proceed in an orderly manner?

While there have been bouts of QE since 2007-2008 there have also been several taper tantrums. This time the fact, rather than the prospect, of a rate increase has been embraced.

So far, anyway. The past is a guide not a guarantee.

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