Interest Rates – Fed Funds Futures Curve
Interest Rates – Fed Funds Futures Curve Market participants are projecting that the Federal Reserve’s terminal rate, which marks the end of the rate cut cycle, will be around 3%. Image: The Daily Shot
Interest Rates – Fed Funds Futures Curve Market participants are projecting that the Federal Reserve’s terminal rate, which marks the end of the rate cut cycle, will be around 3%. Image: The Daily Shot
Interest Rates – Cumulative Rate Cuts vs. Hikes In 2024, global central banks are expected to implement significant policy rate cuts, marking it as the third largest year for such reductions in history, driven by falling inflation and the need to support economic growth. Image: BofA Global Investment Strategy
Interest Rates – Central Bank Policy Rate Hikes vs. Cuts Emerging market central banks typically take the lead in initiating monetary tightening and easing cycles. In 2024, their approach has shifted away from aggressive easing. Image: BofA Global Investment Strategy
Interest Rates Since 3000BC The end of the era of low interest rates could potentially have far-reaching implications for both consumers and businesses. Image: BofA Global Investment Strategy
When Will the Fed First Cut Interest Rates? Will the Fed lower interest rates in the second quarter of 2024? This decision holds significant implications for financial markets and the economy. Image: BofA Global Fund Manager Survey
Interest Rates – Expectations for the Fed’s Policy Rate Path Nomura still expects 25 bp rate cuts in July and December 2024, as well as four additional 25 bp rate cuts in 2025. Image: Nomura
Interest Rates – U.S. Federal Funds Rate Expectations BofA expects a 3.5-3.75% terminal rate in this cutting cycle, up 50bp from their previous forecast. This suggests a need to tighten monetary policy to control inflation and maintain economic balance. Image: BofA Global Research
Interest Rates – Fed Funds Rate Goldman Sachs now expects the Fed to implement three rate cuts in 2024, down from its earlier projection of four rate cuts, in response to elevated inflation data and evolving economic conditions. Image: Goldman Sachs Global Investment Research
S&P 500 Index Valuation vs. Interest Rates The S&P 500 trading at relatively high valuations, should investors consider overweighting U.S. Treasury bonds while simultaneously underweighting U.S. equities in their investment portfolios? Image: Real Investment Advice
U.S. Dollar vs. Real Interest Rates Higher real interest rate differentials between the United States and the world are generally associated with a stronger U.S. dollar. Image: BCA Research