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Special Report

Morningstar's Guide to Rising Rates

Morningstar analysts offer their takes on what higher rates could mean for investors.

The Federal Reserve voted to raise rates this month, but investors have been laser-focused on monetary policy for years now, ever since the central bank launched its suite of unconventional measures during the financial crisis. Terms such as "Operation Twist" and "quantitative easing" entered the investor vernacular as individuals and professionals tried to grapple with what persistently low rates mean for their portfolios.

But what is going to happen now as the Fed begins to normalize its policy? So far, the Fed's policy has been unprecedented, so we don't have a blueprint of what the normalization will look like. Will higher rates put pressure on the bond and stock markets? Can the economy keep growing? How fast will the Fed choose to raise rates? What impact will U.S. policy have on other developed economies? What about emerging markets?