VGSH - Markets Believe The Rate Hike Cycle Has Ended

The Fed hiked rates four times in 2018, and the current fed funds rate target range is at 2.25%-2.50%. Though amid weakening economic conditions, both globally and domestically, the Fed has paused with further rate hikes. Given that the economy has not shown much improvement lately, market participants increasingly believe that the Fed has already reached the end of its rate hiking cycle, and will certainly not be able to hike rates in 2019. We will assess what certain indicators are signalling presently.

Front-end of the yield curve remains inverted

The chart below demonstrates the

Read more ...