QuantitativeExhaustion

US FEDERAL RESERVE DICTATES MARKETS BEHAVIOR

FX:SPX500   S&P 500 Index
Chart describes relationship with Federal Funds Rate X Federal Reserve US Bond Holdings vs. S&P 500            


Increasingly throughout the years markets behavior has been dictated by actions of US Central Bank Federal Reserve .

Following actions and words of Federal Reserve officials have been important elements in forecasting overall market behavior and direction.
Very interesting...
if I understand correctly, before 2008 year the Fund Rate always tried to follow the market trend. After that, rate has been zeroed, and markets start to follow a growing monetary base. And from that moment it is interesting to see chart of S&P and FED BASE overlayed on one another (because they are correlating very well).
But today base is not expanding, at least officially, and rates are still zeroed.
So, FED tries to control effective fund rate via revers REPOs which volume tends to decrease (thus decreasing the real rate)
https://research.stlouisfed.org/fred2/series/RREPT
Reply
avento avento
... I meant "volume of RREPT tends to decrease from beginning of 2016, with the consequences for Dollar index"
Reply
Good research thanks for the insight.
Reply
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out