The Fed is widely expected to hike rates by 75 basis points in its battle against decades-high inflation. Its aggressive monetary policy campaign has battered the U.S. stock market in recent weeks, with investors worried the Fed’s measures could hobble the economy.
Monetary policy expectations impact stocks more than rate moves: RBI paper
Equity markets are impacted more by the expectations of future monetary policy than the policy rate surprises on the day of announcement of the policy