Wednesday, December 05, 2007

S & P 500 vs. Fed Funds Rate



I'll be commenting more on this later so check back for updates to this post. Its and I just wanted to get these charts up here. They are pretty self explanatory, the fed funds rate is strongly correlated with the S&P 500. Interestingly, the fed funds rate seems to lag the stock market by months but they both move in the same direction. I will give more color later, but for now here are some links:

Pimco's Gross Says Fed May Have to Cut Rates Below 3%

Pimco's Gross Sees 25 bps FOMC cut, not 50 bps

Five Things to Know About the Coming Rate Cut

Fed Interest Rate Data Since 1971

Fed Funds Rate Plot Since 1997

1 comment:

indigo-alien said...

It is interesting but difficult to watch the strength in the dollar over the last two days, in light of all of the speculation concerning rate cuts.

I'm just waiting todays rate decision by the ECB. If they stick to their price stability mandate, the US dollar could give back all of its recent gains.