The US Federal Reserve last raised their target rate in December 2018. At the time, S&P 500 volatility spiked and the S&P 500 index tanked (the line in green is the S&P 500 index INVERTED).
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But since the December rate hike, The Fed has held rates steady, the S&P 500 has risen and the VIX has settled down.
Despite jawboning by regional Fed chairs, the market is still betting on a rate cut at the next FOMC meeting.
The Fed is now acting as a “Bubble Preservation Band.”