The Federal Reserve and other central banks around the globe have increased interest rates since 2022 to combat inflation. In a rising interest rate scenario, borrowing and consumption becomes expensive; therefore, it is anticipated that people will save and invest for better returns. This is essentially done to control excess liquidity or money supply in the economy. Several facets of the economy are impacted by changes in interest rates, including real estate sales, domestic consumption, credit offtake, business activity etc., which in turn directly impact the stock market. In this report, we analyze the possible outcomes of the FEDs monetary policy and its impact on GCC banks.