Market Reaction to Fed Insurance Cuts vs. Fed Recession Cuts This chart shows the S&P 500 and 10-year Treasury Note response to Fed insurance cuts vs. Fed recession cuts. There is a big difference for equities, but not too much for bonds. Picture source: Pictet Wealth Management
U.S. Leading Economic Indicators (LEI) and Fed Insurance Rate Cuts This chart shows that Fed insurance rate cuts can be good news when the U.S. economy slows down. Picture source: Scotiabank
Fed Rate Cuts Priced In and Recession Insurance cuts or recessionary cuts? It usually doesn’t end well, when the bond market begins to price in more than three rate cuts over the next 6 months. Picture source: Societe Generale Cross Asset Research
S&P 500 and Past Easing Cycles The S&P 500 did rather well after easing cycles began, especially during Fed insurance cuts. You may also like “Market Reaction to Fed Insurance Cuts vs. Fed Recession Cuts.” Picture source: Fidelity Investments
