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Average Returns After First Fed Rate Cut of Cycle

Posted By: Morningstar and S&P

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CHART HIGHLIGHTS

  • The Federal Reserve signaled its intention to cut short-term interest rates, an event associated with previous rallies in stocks and bonds.
  • Following the start of the past seven rate-cutting cycles, bonds showed the most immediate benefits while stocks exceled over the long term.