Recessions – Fed Funds Rate vs. Rolling 12-Month Drawdown on Multi-Asset Portfolio of FICC and Equities Could the Fed cause the next recession by raising interest rates too soon? Image: J.P. Morgan
Market-Implied Path of the Fed Funds Rate Markets are pricing almost 3 rate hikes from the Fed by the end of 2023. Image: Goldman Sachs Global Investment Research
2-Year Fed Funds Expectations vs. U.S. 10-Year Treasury Yields There is a positive correlation between the change in Fed funds expectations and the change in U.S. 10-year Treasury yields. Image: BofA Global Research
Fed Funds Futures – Interest Rates Will interest rates go up in 2022? Image: TS Lombard
Interest Rates – Fed Funds Rate Goldman Sachs expects the federal funds rate to rise in early 2025. Image: Goldman Sachs Global Investment Research
Interest Rates – Fed Funds Futures Curve Markets no longer expect negative rates in the United States. Image: The Daily Shot
Fed Funds Futures Curve (Interest Rates) For the first time, traders are starting to price in negative U.S. interest rates for first time. Image: The Daily Shot – The Wall Street Journal
Fed Funds Future The Federal Reserve also sees near-zero interest rates lasting through 2022 to curb economic damage of the coronavirus. Image: Goldman Sachs Global Investment Research
Fed Funds vs. Employment/Population + Inflation This chart suggests the optimal monetary policy, while Fed officials do not anticipate any rate hikes until 2022. Image: Oxford Economics
Expected Fed Funds Rate, Negative Interest Rates and 2-Year Treasury Yield Negative U.S. yields are in sight, as Fed funds futures for June 2021 imply an expected negative rate of -0.03%. Image: Fidelity Investments