Fed Rate Hike Looms: What It Means for the Stock Market

The Federal Reserve is likely to raise interest rates this week, despite the potential negative impact on the stock market.

Inflation has lingered above acceptable levels for too long, and higher interest rates are needed to curb price growth.

This move will make borrowing more expensive for companies and consumers, which could stifle profitable growth in the economy.

The S&P 500 is already valued at over 23 times its trailing 12-month earnings, making stocks vulnerable to a rate hike.