Search Results for: fed rate

Historical CCC Junk Bond Spreads CCC junk bond spreads are at lowest levels since 2007, thanks to the Fed’s low-rate policies. Image: BofA Global Investment Strategy

Greatest Annual Flows Biggest inflows into TIPS and financials this year, as the Fed lets the U.S. economy run hot. Image: BofA Global Investment Strategy

Tech Stocks – Central Bank Balance Sheet vs. Big Tech Market Capitalization Are markets too optimistic about Fed tapering? Image: BofA Global Investment Strategy

U.S. Budget Deficit and Current Account The U.S. federal government’s budget deficit is skyrocketing. This is not a cause for panic… yet. Image: BofA Global Investment Strategy

Central Banks and U.S. Financial Conditions Index (FCI) If the Fed, the ECB and the BoE wait until 2025 before raising rates, financial conditions should remain very easy. Image: Goldman Sachs Global Investment Research

Asset Bubbles and Tight Money Should the Fed raise rates to prick the tech bubble? Image: Alpine Macro

U.S. 10-Year Note Yields: Explaining Rolling Three-Month Changes Chart suggesting that U.S. policy uncertainty and Fed committing to low rates explain U.S. 10-year Treasury note yield. Image: Arbor Research & Trading LLC

A Basket of Inflation Expectations The Fed’s unlimited quantitative easing program lifts inflation expectations, limiting the expansionary effects of negative interest rates. Image: Gavekal, Macrobond

U.S. Business Cycle: Actual vs. Potential U.S. Real GDP The mature phase of the U.S. business cycle began 2 years ago. If inflation remains stable and the Fed avoids restrictive monetary policy, then the risk of recession is reduced. Image: NBF Economics and Strategy

Earnings Estimate Progression The consensus growth estimate for Q3 earnings stands at -3.2%, but the earnings recovery seems better than 2016. The Fed’s dovish pivot and low interest rates should continue to support the U.S. stock market. Image: Fidelity Investments