A 'pause and pop' rally will push stocks higher throughout 2023 as the Fed backs off aggressive policy, CFRA says

• Stocks look ready for a 'pause and pop' between when the Fed pauses rate hikes and starts cutting, CFRA said. 
• Financial and homebuilding sectors historically perform best during the nine-month stretch between the Fed's actions. 
• CFRA said the Fed may make its final rate hike of this cycle at the upcoming February 1 meeting. 

The Federal Reserve will unleash a "pause and pop" rally in the stock market when policy makers halt their interest rate hikes then shift to cutting down borrowing costs, according to CFRA.