Market history · Central banks ·
The Fed raises rates for the fourth time in 2018
On 19 December 2018 the Federal Reserve raised its target range to 2.25–2.50%, its fourth increase of the year, and said it judged that some further gradual increases would be appropriate.
Stocks were already falling. The S&P 500 went on to its low on Christmas Eve, and in January 2019 the Fed shifted to a more patient stance, eventually cutting in July 2019.
The takeaway
A central bank reacting to markets can turn quickly, even within weeks of a decision.
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