Average S&P 500 Performance in Fed Tightening Cycles
Average S&P 500 Performance in Fed Tightening Cycles Around 9 months after the first rate hike, the S&P 500 tends to be flat for over a year. Image: Deutsche Bank
Average S&P 500 Performance in Fed Tightening Cycles Around 9 months after the first rate hike, the S&P 500 tends to be flat for over a year. Image: Deutsche Bank
How Many Times Do You Think The Fed Will Raise Rates? FMS investors expect 1.5 Fed rate hikes in 2022 and do not expect the Fed to tighten aggressively. Image: BofA Global Fund Manager Survey
Interest Rates – Pace of Hikes After the First Rate Hike and U.S. 10-Year Treasury Yield The expected pace of Fed rate hikes tends to drive interest rates. Image: Morgan Stanley Wealth Management
Fed – Policymaker’s Projections for the Midpoint of U.S. Interest Rates The Fed forecasts first rate hikes in 2023. Image: Financial Times
Fed – Expectation for the Tapering Timeline Is it time to talk about tapering quantitative easing and rate hikes? Image: Goldman Sachs Global Investment Research
Survey – When Is the Fed Most Likely to Raise Interest Rates? 43% of the respondents in the survey see the Fed lifting off in 2023, with another 39% projecting the first rate hike in 2024 or later. Image: J.P. Morgan
Fed Funds vs. Employment/Population + Inflation This chart suggests the optimal monetary policy, while Fed officials do not anticipate any rate hikes until 2022. Image: Oxford Economics
Is Wall Street Overestimating Fed Rate Cut Odds? For the first time, the probability of a rate cut is above 80%, and the probability of a rate hike is 0%. Image: Bloomberg
Change in Financial Conditions Following Major Geopolitical Events Will the Fed delay rate hikes and balance sheet reduction? Image: Goldman Sachs Global Investment Research
Estimated EPS Impact from a 90bp YoY Increase in Cash Yield Through Interest Income Historically, the S&P 500 tends to do well during Fed hike cycles. Image: BofA US Equity & Quant Strategy