The last hike in the Fed Funds Target Rate was exactly a year ago today, and there it has remained. Mixed messages from economic data have pressed analysts estimates both up and down, the current consensus is now for a cut in 2008. Revisiting an old table we look below at how the market has reacted to long periods of unchanged rates. We have also included a chart of the S&P 500 versus the Fed Funds Rate since 1989.
The current period is catching up to the largest gains, far outpacing the the average gain of 12%, but significantly shorter than the longest period of 1070 calendar days.