Interest Rates – Market-Implied Probability of Negative Policy Rate 1 Year Ahead Negative interest rates in the US and the UK ahead? Option markets point to elevated probabilities. Image: Goldman Sachs Global Investment Research
Fiscal and Monetary Policy – S&P 500 Real Total Return vs. the Fed Balance Sheet This chart shows the S&P 500 Real Total Return vs. the Fed balance sheet since 1937. Image: Fidelity Investments
Fiscal Policy – U.S. Fiscal Response to Coronavirus and Global Financial Crisis This chart puts into perspective the massive U.S. fiscal response to the coronavirus pandemic in 2020. Image: Goldman Sachs Global Investment Research
Fiscal Policy – Discretionary Fiscal Easing in Response to Coronavirus Crisis This chart puts into perspective the U.S. fiscal stimulus relative to other countries. Image: Goldman Sachs Global Investment Research
U.S. Economic Policy Uncertainty Index High policy uncertainty can lead to recessions. Currently, U.S. economic policy uncertainty is higher than during the financial crisis. Image: Deutsche Bank Asset Allocation
Central Banks Policy Rates The Fed has more room than most other central banks in developed economies to cut further. Image: Financial Times
Emerging Markets Monetary and Fiscal Policy This chart puts monetary and fiscal policy in emerging markets into perspective (now to end 2020). Image: Capital Economics
U.S. Monetary Policy, Term Premium and Yield Curve This chart suggests when U.S. monetary policy is too tight or too loose. An inverted yield curve is a sign that monetary policy is too tight. Image: Fidelity Investments
Emerging Markets Monetary Policy vs. Economic Cycle (Leading Indicator) Chart suggesting that EM monetary policy easing is likely to increase economic activity in the coming months. Image: Topdown Charts
China’s Monetary Policy The Chinese banks’ reserve requirement ratio will be cut by 50 bps on January 6, to 12.5%. Image: Bianco Research