Search Results for: Fed rate cut

FMS Investors – Net % Expecting Higher Short-Term Rates At the market lows, investors will expect the Fed to cut rates. Image: BofA Global Fund Manager Survey

Fed Tightening and U.S. Recessions Should investors be worried when the Fed stops raising or cuts rates? Image: Goldman Sachs Global Investment Research

Change in Fed Funds Rate The Fed has cut rates by 100 bps to 0.00-0.25%. This is the biggest rate cut in modern times. Image: Danske Research

Leading Economic Index (LEI) and Fed Funds Rate Will the Fed’s three rate cuts be enough to lift the U.S. economy? Image: Oxford Economics

S&P 500 Index: Recession Rate Cuts vs. Precautionary Rate Cuts This chart shows what the U.S. market has done after first Fed cut in a business cycle. The current path follows precautionary rate cuts and does not suggest an imminent recession in the U.S.. Image: UBS

U.S. Long-Term Business Cycle and Fed Insurance Cut vs. Fed Recession Cut In recent history, when the U.S. long-term business cycle peaks in the 90th percentile and the Fed cut rates, a recession occurred. Image: Pictet Asset Management

Implied Probability of Fed Funds Rate in December 2020 The market thinks the Fed will cut rates below 1.75% by end of 2020, as the probability of recession increases. Image: J. Safra Sarasin

10Y-3M Treasury Yield Spread After First Rate Cut and Recessions After the first Fed rate cut, a steepening of the U.S. 10Y-3M yield spread could suggest a recession is coming. Image: Charles Schwab

U.S. Yield Curve 1M to 30Y and Correlation Against Fed Funds Effective Rate According to the chart, a 75bp cut is required to normalize the term structure of interest rates. Image: Fundstrat Global Advisors, LLC

Stock Market Around First Rate Cut: Recession vs. No Recession The chart shows that the Dow Jones Industrial Average reacts positively to Fed first rate cuts. Image: Ned Davis Research

ISM Manufacturing Index Surrounding FED Easing Cycles The chart shows that the trend of the ISM Manufacturing Index is quite similar to past cycles before first Fed rate cut. Image: Deutsche Bank