The Fed's Rate Hikes and Pauses: Impact on U.S. Financial Markets and Future Monetary Actions.

The Federal Reserve's aggressive monetary tightening campaign over the past 15 months, which included 10 consecutive interest rate hikes, fueled wild swings in the US financial markets. While the S&P 500 has regained all of its losses since the first rate hike in March 2022, it has yet to reach its all-time high. Rising interest rates have also impacted the bond market, with yields soaring since March 2022. Gold prices have recovered all their losses, while cryptocurrencies like bitcoin have slumped. The Fed's recent decision to pause rate hikes has left market participants hopeful that the tightening era is coming to an end.