Number of Rate Hikes per Fed Tightening Cycle, 1994 to 2023 Since 1994, the Fed has gone through six tightening cycles. Five lasted for years and involved at least six rate hikes. But with real rates already starting from historically high levels, this cycle may be much shorter. Image: Real Investment Advice
S&P 500 Around First Fed Rate Hikes vs. Speed of Hikes In fast tightening cycles, the S&P 500 typically struggles in the 12 months post-first hike; in slow or no cycles, it tends to rally. Near term, stocks stay shaky until investors believe in a “slow-hike” or “one-and-done” Fed. Image: Ned Davis Research
S&P 500 Index Performance After The First Fed Rate Hike Historically, the S&P 500 has weathered the Fed’s first rate hike better than investors might expect. Following an initial 25 bp move, the index often stumbles early but, in every cycle since 1990, has been higher a year later. Image: Carson Investment Research
Global Policy Rate Hikes In June 2024, for the first time since October 2020, no major central banks around the world raised interest rates, marking a significant shift in global monetary policies. 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
Russell 2000 Returns After Last Rate Hike Should equity investors favor U.S. small-cap stocks following the last Fed rate hike? Image: BofA Global Investment Strategy
Dow Jones Industrial Average Returns Post Last Fed Rate Hike Is it advisable this time for U.S. equity investors to sell their holdings following the last Fed rate hike? Image: BofA Global Investment Strategy
Interest Rates – Probability of Fed Rate Hike The likelihood of the Federal Reserve holding interest rates steady in September has increased. Image: The Daily Shot
U.S. 30-Year Treasury Returns After Last Rate Hike The U.S. 30-year Treasury tends to outperform in the three and six months following the last Fed rate hike. Image: BofA Global Investment Strategy
U.S. Dollar Returns After Last Rate Hike In inflationary periods, the U.S. dollar tends to rise in the three and six months following the last Fed rate hike. Image: BofA Global Investment Strategy
Gold Returns After Last Rate Hike Should investors sell gold after the last Fed rate hike? Image: BofA Global Investment Strategy