Search Results for: monetary policy

VIX and Fed Monetary Policy This year, the VIX average has been similar to 2018, despite Feds’ policy U-Turn in January. Image: BofA Merrill Lynch Global Research

G4 Central Banks Monetary Policy Rate If the trend in G4 central banks monetary policy rates continues, this chart suggests that we could see -4% in 2030. Image: Nordea and Macrobond

U.S. Monetary Policy and Recession This chart shows the U.S. monetary policy and two recession forecasting models over time (Fed policy rate, Atlanta Fed shadow Fed funds rate, nominal R-Star, Fed funds curve). Image: Fidelity Investments

A Hall of Mirrors in Monetary Policy? This chart suggests a feedback loop between bond market pricing and central bank decisions. Image: Goldman Sachs Global Investment Research

Wage Growth, Monetary Policy and S&P 500 When the spread between wage growth and the Fed funds rate is wide, it is generally positive for equities. Image: Topdown Charts

Fed Monetary Policy Rate Change over 6 Months Prices in (Futures) vs. Actual Actually, the Fed decides when to raise rates, but the market decides when to cut rates. This chart shows that rate expectations are highly predictive six months in advance. You may also like “Markets Have Accurately Priced in Cuts before Easing Cycles…

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

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

Median Policy Rate Projections in the Fed’s Summary of Economic Projections The anticipation of rate cuts in 2024 and beyond is generally viewed as bullish for equity markets, as it signals a potential easing of monetary policy that can support economic growth and stock prices. Image: BofA Global Research