Charles Schwab: U.S. Economy Will Remain Resilient Amid Federal Reserve Rate Hike Cycle

Kevin Gordon, head of macro research and strategy at Charles Schwab, stated that the current economic backdrop remains relatively favorable for the Federal Reserve's interest rate hikes. Even as the Fed enters a cycle of multiple rate increases, the U.S. economy is likely to maintain its resilience. He pointed out that rate hike cycles are often accompanied by significant market volatility. Historical data shows that within 12 months of the Fed initiating a rate hike cycle, the S&P 500 index has averaged a maximum decline of over 10%. Analysts believe that monetary policy is just one of the factors affecting stock prices, and currently, investments in the AI sector and inflation driven by rising oil prices seem to be the main factors driving the stock market.