How does the market respond to FED rate hikes?

To fight recessions or combat an overheating economy, the FED lowers or raises its rates; respectively. You can see all the FEDs fund rate changes here. On December 16, 2008 the FED lowered its rate to <0.25%. Yes, rates did change a bit from month to month (between +0.07 and +0.20%), but they were effectively zero…