Reuters
- The Fed is poised to hike interest rates today for the last time in the current cycle, according to Fundstrat.
- That's because inflation has declined, the labor market is softening, and financial stability risks have increased.
- Stocks have historically performed well after the Fed implemented its last interest rate hike.
The Federal Reserve is poised to hike interest rates for the last time of the current cycle on Wednesday, and that has bullish implications for the stock market based on historical data.
Fundstrat's Tom Lee called Fed Chairman Jerome Powell's expected 25 basis-point interest rate hike on Wednesday a "dovish hike" because there are three clear reasons this will be the last bump for some time.
Those reasons include: