10-Year/2-Year Treasury Yield Curve Around First Fed Rate Cuts The U.S. yield curve typically steepens once the prospect of interest rate cuts by the Fed becomes more imminent, rather than when the Fed actually stops hiking rates. Image: Goldman Sachs Global Investment Research
S&P 500 Pre and Post Fed Rate Cuts The S&P 500 typically shows positive performance in the 12 and 24 months after the Fed’s first rate cut, unless the U.S. economy enters a recession. Image: Goldman Sachs Global Investment Research
Probability of Fed Rate Cut With signs of U.S. inflation cooling, can investors and traders expect the Federal Reserve to cut interest rates twice by the end of the year? Image: The Daily Shot
Fed Rate Cuts 78% of FMS investors predict that there will be either 2, 3, or more Fed cuts over the next 12 months, reflecting their optimism about the likelihood of interest rate reductions. Image: BofA Global Fund Manager Survey
Market Pricing of Fed Rate Cuts Market’s expectations of Fed rate cuts have risen. Will the Fed make two rate cuts in 2024? Image: BofA Global Research
S&P 500 After Initial Fed Rate Cuts Outside Of Recession Outside of recessions, U.S. stocks have tended to rise after the Fed’s first rate cut, with an average gain of 15% within 12 months. Image: BofA Predictive Analytics
Monthly Number of Global Central Bank Rate Cuts In response to slowing inflation and the need to bolster economic growth, central banks around the globe are shifting towards a more accommodative monetary policy. Image: BofA Global Investment Strategy
S&P 500 with Start of Rate Cut Cycles and U.S. Recessions Historically, the S&P 500 has tended to post positive returns in the 12 months following the Fed’s first rate cut, unless the U.S. economy enters recession. Image: Deutsche Bank
Interest Rates – Cumulative Rate Cuts vs. Hikes There have been 470 interest rate hikes worldwide over the past two years. Image: BofA Global Investment Strategy
Global Central Bank Rate Cuts vs. Hikes Since the beginning of the year, there have been more global rate hikes than global rate cuts. Image: BofA Global Credit Research