SpartaBTC

Relationship of the Fed interest rate + SP 500 index

SP:SPX   S&P 500 Index
Logarithm. The time frame on both charts is 1 month. It is worth considering as an indicator of large market cycles in general.

I will not describe it, because I have already said a lot about it before. There is a correlation, which is logical, but not always. There are also reasons for this, which I have voiced before.


Expensive and cheap money - the regulation of the growth and decline of the U.S. economy (the whole world).

The Fed Funds rate, is the target interest rate set by the Federal Open Market Committee (FOMC) on the basis of which commercial banks borrow and lend their excess reserves to each other for short periods (usually overnight).

The Federal Open Market Committee (FOMC), the monetary policy setting body of the Federal Reserve, meets eight times a year to determine the federal funds rate.

The federal funds rate can affect short-term rates on consumer loans and credit cards, as well as the stock market.

By law, banks must maintain a reserve equal to a certain percentage of their deposits in a Federal Reserve Bank account. The amount of money a bank must keep in its account at the Fed is known as the reserve requirement and is based on a percentage of the bank's total deposits.

The rate target set by the Federal Reserve is achieved through open market operations. Since the Fed cannot set the rate's exact value through such operations, the actual value may fluctuate near the target rate.

The Fed Funds rate is one of the most important interest rates in the U.S. economy because it affects monetary and financial conditions, which in turn affect critical aspects of the overall economy, including employment, economic growth and inflation.


SP 500 Index.

S&P 500(SPX) is a stock index whose basket includes 503 stocks of the 500 selected publicly traded companies with the largest capitalization on U.S. stock exchanges. The list belongs to and is compiled by Standard & Poor's. The index is published since March 4, 1957.


Major trend (long term)

SP500 index. The entire trend. 100th Anniversary


Plot of the index during the "Great Depression."

SP500 index. Pumping before the "Great Depression" Code 372-69


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