The Fed is hiking again — and the rest of the world could feel the squeeze

cnbc.com · 2026-09-17

The Federal Reserve is raising interest rates again, and the effects could reach far beyond U.S. shores.

TickrTrends take: Federal Reserve rate hikes typically increase borrowing costs across the financial system, which can compress margins for financial services companies like MCO while also potentially reducing the volume of transactions they facilitate. Given TickrTrends' current assessment that MCO is undervalued, investors should monitor whether the company's earnings power remains resilient through tightening cycles and whether its business model can sustain profitability as credit conditions shift. The broader global economic slowdown that often accompanies Fed tightening could affect both the demand for MCO's services and the credit quality of entities it rates or analyzes.

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