Fed Funds: Typical Cycle

This chart below illustrates the average change (blue line) in the fed funds rate following a major bottom. While the last Fed tightening cycle (gold dashed line) fell a touch short of average, this tightening cycle has already witnessed a run that is a touch more than average — because we started from such unusually low levels (1%).

Consider how unusual this Fed cutting and tightening cycle is:

Fed_funds_1


Source: Chart of the Day
(updated through July)

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