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Impact of Raising Interest Rates On Stock Performance

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When the Federal Reserve (Fed) raises interest rates, it impacts many parts of the economy, including the stock market. Shrinking the money supply helps to keep the lid on inflation, a primary concern of the Fed. It also makes it more expensive to borrow money, causing consumers and businesses to cut back on spending. This, in turn, can lead to a reduction in the valuation of companies and their stocks as their cost of doing business goes up while profits decline.

When the Federal Reserve (Fed) raises interest rates, it impacts many parts of the economy, including the stock market. Shrinking the money supply helps to keep the lid on inflation, a primary concern of the Fed. It also makes it more expensive to borrow money, causing consumers and businesses to cut back on spending. This, in turn, can lead to a reduction in the valuation of companies and their stocks as their cost of doing business goes up while profits decline.

Score from the experts at Killer Infographics

Visual Communication - 55%
Design - 65%
Content/Script - 75%
Usability - 45%

60%

Final Grade

This infographic provides insight on how raising interest rates affect stock performance. While the message is conveyed clearly, in order to read the infographic, a viewer must scroll both vertically and horizontally when interfacing with the piece when not encountering the infographic as embedded content. With all the charts and graphs in this piece, a vertical scrolling experience prevents all information from being seen at once. In addition, the data, while interesting in the tables, could be redesigned in a more visual way, in order to aid comprehension. We'd give this a D.

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