Cumulative Number of Global Rate Cuts since the Global Financial Crisis This chart puts into perspective the cumulative number of global rate cuts since the Global Financial Crisis. In 2019, central banks in OECD countries haven’t cut this much since the Great Financial Crisis. Image: BofA Merrill Lynch Global Research
10-Year U.S. Treasury Yield and Fed Insurance Rate Cut Chart suggesting a steeper yield curve and higher 10-year U.S. Treasury yields through mid-2020. Image: J.P. Morgan
S&P 500 Index and Fed Insurance Rate Cut Chart suggesting around 5% upside for the S&P 500 Index through mid-2020. Image: J.P. Morgan
Cumulative Interest Rate Cuts in OECD Countries Central banks in OECD countries haven’t cut this much since the Great Financial Crisis. Image: Deutsche Bank Global Research
Range of Returns Two Years After Fed Rate Cut Historically, equities rally significally, when the Fed eases during soft patches. Image: Barclays Research
Break-Even Inflation Rate On 10-Year TIPS and Fed Rate Cut (Hike) If inflation expectations continue to fall or remain low, the Fed could probably cut rates further. Image: Gavekal
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
Fed Rate Cuts and Business Cycle Similar Fed rate cuts in the 1990s should be enough to prolong the business cycle, and should be positive for stocks. Image: LPL Financial LLC
U.S.: Market Odds of A Fourth Rate Cut The Fed may be inclined to press the pause button in the “mid-cycle” policy easing. Image: Oxford Economics
S&P 500 Index Returns After Three 25 Basis Point Rate Cuts After three rate cuts of 25 basis points in 1975, 1996 & 1998, the S&P 500 was, on average, up more than 10% six months later and 20% one year later. Image: LPL Financial LLC