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☆ Here's what usually happens to stocks when the Fed cuts rates
▼ + stars: | 2024-07-31 | by ( Ganesh Rao | ) www.cnbc.com time to read: +2 min

Any September decision to lower the Fed's target range would be the first time interest rates have fallen since the hiking cycle began in March 2022. However, stocks fell soon after the rate cut in 2001 and 2007 by 13.5% and 20.6%, respectively, due to the dotcom crash and the global financial crisis. The current tightening episode is the seventh in the past 40 years. Historically, the Fed has cut rates because the U.S. economy was heading into a recession or experiencing a notable growth slowdown. While nominal rates peaked at 11.5% at the end of the 1983-84 episode, the current target range of 5.25%-5.50% is the highest this millennium.

Persons: Kevin Kliesen, Louis Organizations: CNBC, CNBC Pro, Federal Reserve, Federal Reserve Bank of St Locations: U.S

There are hints that the worst of the U.S.'s bout with inflation may be in the past. The consumer price index, a widely watched inflation gauge, came in at 7.7% in October when compared with a year earlier. Inflation can be very hard to predict," Kevin Kliesen, business economist and research officer at the Federal Reserve Bank of St. Louis, told CNBC in an interview. However, any potential downturn is expected to be mild, The Conference Board CEO Steve Odland told CNBC. This could be a much less painful experience with the Fed trying to tame inflation than it has been in the past," Odland said.

☆ Here's when Wall Street thinks inflation could finally end
▼ + stars: | 2022-11-21 | by ( Noah Higgins-Dunn | ) www.cnbc.com time to read: +1 min

There are hints that the worst of the U.S.'s bout with inflation may be in the past. The consumer price index, a widely watched inflation gauge, came in at 7.7% in October when compared with a year earlier. While that was still well above the Federal Reserves' 2% target, it did clock in below Wall Street's expectations. However, any potential downturn is expected to be mild, The Conference Board CEO Steve Odland told CNBC. This could be a much less painful experience with the Fed trying to tame inflation than it has been in the past."

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