What the Fed does affects the stock market

When the Federal Reserve tinkers with interest rates, that can affect the stock market. And, depending on the perception of whether it will help or hurt consumer confidence and the U.S. economy, that affects the overall performance of the stock market. The Fed will be deciding whether or not to raise interest rates on August 8, and that can mean a boost to the stock market, or a decline. Right now the stock market is a little soft, losing ground. Speculation by stock investors over what the Federal Reserve could do has the markets volatile right now. However, once the decision to raise interest rates or keep them the same is made, the stock market will probably settle down.

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