Search Results for: monetary policy

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

Average Global Policy Rate Global central banks moved decisively into rate‑cutting mode through 2025, with analysts expecting further, though more measured, easing in 2026, particularly in the United States. Image: Goldman Sachs Global Investment Research

Policy Uncertainty Index vs. S&P 500 Index Policy uncertainty often rattles markets—but those jitters tend to be short-lived, with volatility typically hitting peak levels near market lows. Image: Real Investment Advice

U.S. Labor Market – Nonfarm Payrolls Growth in the Month That the Fed Starts Easing Policy The recent rise in payroll numbers is surprising given the Fed’s easing of interest rates. Usually, strong job growth coincides with tighter monetary policy, but the current situation reveals a notable divergence. Image: Deutsche Bank

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

FMS Investors – Net % That Monetary Risk to Be Above Normal Does tightening monetary policy pose the greatest risk to financial market stability? Image: BofA Global Fund Manager Survey