With Fed rate hike all but assured, here's how markets might react

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With Fed rate hike all but assured, here's how markets might react

60-second summary

Traders anticipate the Federal Reserve’s rate hike as virtually certain and shift focus to what tighter monetary policy signals for growth, scrutinizing inflation trends, credit conditions and corporate earnings; they weigh potential slowdown risks while pricing in higher borrowing costs, which could dampen equities, strengthen the dollar and pressure risk‑on assets across the market.

Traders could look past an expected Fed hike and weigh what higher rates are signaling about the economy.