Historical Analysis of Fed Pauses and Market Reactions
Citigroup has released a timely analysis that explores the historical pattern of Federal Reserve pauses during previous easing cycles. As the market adjusts to the likelihood of no immediate changes in January, investors are re-evaluating their strategies based on past performance. Understanding these historical precedents provides insights into how stocks and bonds may react following a period of Fed inaction. Investors can leverage this knowledge to inform their decisions as market dynamics continue to evolve.