Sector Investing

[ReturntoSender]

COTD - Change From FED Funds Trough

Chart of the Day

http://www.chartoftheday.com/20060630.htm?T

Today, Bernanke & Co. increased rates by 0.25% to 5.25% as expected. However, for the first time since the it began the current tightening phase, the Fed did not say that it was actively considering another rate increase. Wall Street was positive on the dovish stance and surged up over 2% on the day. For some perspective, today's chart (which is updated through July since the Fed won't meet again until August) 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. Stay tuned...

Notes:
- The market is at a critical juncture. Where we go from here may surprise you. Find out now with the exclusive & highly regarded charts of Chart of the Day Plus.