This week, the Fed will hold a meeting to discuss interest rates in March, which is widely expected to raise interest rates by 25 basis points. This will heraldThe Federal Reserve may begin to enter a new cycle of raising interest rates。

What impact will the interest rate hike have on the market?Historical data show that the landing of interest rate hikes will often lead to varying degrees of adjustment in the stock market, but will eventually return to rise as fundamentals improve.

Some institutions said that the current round of inflationary pressure in the United States far exceeded the Fed's expectations, and the pace and intensity of the Fed's interest rate hike and table contraction will be significantly accelerated and intensified in order to curb the rising inflation.

In terms of stock market"raising interest rates to fight inflation" can easily lead to "performance + valuation" double kill, and there is a downside risk in the stock market in the short term.Supported by good economic fundamentals, the increase in corporate earnings may be able to offset the negative impact of higher interest rates on share prices.

For the dollarThe dollar index does not necessarily rise in the interest rate hike cycle, but mainly depends on marginal changes in economic growth in the US and eurozone economies, as well as differences in expectations of monetary policy adjustments between the Federal Reserve and the European Central Bank.