Fed Watch: 7 charts on how assets perform when the Fed pauses
With the upcoming Fed meeting later today, we have sat down and looked at how assets perform when the Fed pauses, which is likely going to happen sooner rather than later.
Markets are currently pricing a roughly 90% probability of a pause (or rather a skip) from the Fed today. We’ve conducted a chart-packed review of historical performance across asset classes around previous pauses. The conclusions are for you to make.
The short story is that basically everything …
1. S&P 500
The broad S&P 500 equity index has on average rallied on the back of Fed pauses in previous hiking cycles. This is likely due to expectations of a forthcoming change of policy and the prospect of laxer monetary conditions.
With the upcoming Fed meeting later today, we have sat down and looked at how assets perform when the Fed pauses, which is likely going to happen sooner rather than later.
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