Search Results for: Fed rate cut

Treasury QT The current context suggests that QT can continue even as the Fed begins to cut interest rates, provided that these cuts do not push the policy rate below what is considered neutral. Image: Deutsche Bank

Weekly U.S. Equity Fund Flows U.S. equity funds have seen substantial inflows amounting to $31.74 billion, reflecting a strong positive sentiment among investors, particularly following the Fed’s decision to cut interest rates last week. Image: BofA Global Research

Flows into Equity and Bonds Funds Substantial inflows into equity and bond funds are fueled by investor optimism regarding falling inflation and the potential for interest rate cuts by the Fed. Image: Deutsche Bank Asset Allocation

U.S. CPI Inflation vs. U.S. 10-Year Bond Yield CPI dynamics in early 2024 show a clear pattern: Q1’s higher inflation prompted increased Fed scrutiny, while Q2’s declines suggest potential interest rate cuts, impacting market expectations and U.S. Treasury yields on CPI days. Image: BofA Global Research

S&P 500 – Indexed Performance Until the summer, the S&P 500 achieved one of its best starts in history, closely following the trajectory of 1995. During that year, the Fed cut interest rates, marking the last soft landing in the U.S. economy. Image: Goldman Sachs Global Investment Research

Inflation – U.S. CPI Forecasts With inflation high, the Fed’s interest rate cut decisions require a delicate balance between price stability, economic expansion and employment support. Image: BofA Global Investment Strategy

Inflation – Potential Paths for U.S. Core CPI If the Fed cuts rates in June, U.S. core CPI is expected to exceed the Fed’s 2% inflation target, which could pose challenges for the central bank in maintaining price stability. Image: BofA Global Investment Strategy

Asset Returns During Hiking Cycles Investors should worry when the Fed stops raising or cuts rates. Image: Goldman Sachs Global Investment Research

One of the Best Recession Indicator The Fed is cutting rates and the 10-year rate is inverted to Fed funds. Image: Real Investment Advice

Probability of US Recession is Rising Mike Wilson, chief U.S. equity strategist for Morgan Stanley, said that “Fed could cut as soon as July but it may not halt slowdown/recession.” Image: U.S. Global Investors