Market history · Central banks ·
The Fed's last rate rise takes rates to a 22-year high
On 26 July 2023 the Federal Reserve raised its target range by a quarter point to 5.25–5.50%, the highest level in more than two decades. It was the eleventh increase in just over sixteen months.
It proved to be the last. The Fed held the range for the next fourteen months and began cutting in September 2024. Holders of cash and short-dated bonds earned the most in years during the plateau, while longer-dated bonds were hit hard by the climb in yields.
The takeaway
Rates that rise fast can hold at a peak longer than expected before they fall.
This is a retrospective about a past event, provided for general information. It is not investment advice, does not describe RockLake's positioning at the time, and past performance is not a guide to future performance. Read the risk warning.