Data Board: How Did Global Assets Perform Before & After Fed's Last Rate Hike?
@Tiger_Insights:
On April 12th, US CPI and the minutes of the March FOMC meeting were released. After the two key events, the pricing of Fed rate futures and the Wall Street investment banks led by Goldman Sachs' chief economist Jan Hatzius all generally expect that the Fed will raise interest rates for the last time at the May FOMC meeting.So what has been the performance of US, Hong Kong, and other major global asset classes before and after the last time the Fed raised interest rates in history?The following chart shows the 16 times the Fed has raised interest rates for the last time since 1971. In the year following these events, the US economy has gone into recession 8 times and not gone into recession 8 times. Therefore, we will first look at the historical performance analysis of these two situation