Friday, March 6, 2020
Chart of the Week – 3/05/2020
The Federal Reserve cut the Fed Funds Rate by 50 basis point, as market forces seemed to require, but it appears the market may be demanding further intervention (see chart below). Fed action has been a factor in spurring market growth in the past. Clearly, the Fed is concerned about the potential economic impact of coronavirus and took swift action with the “emergency” rate cut, as a result. The second chart shows the forward performance of the S&P 500 after previous emergency rate cuts. Here are some related thoughts…
