Interest Rate Hikes over the last 30 Years

The current 2022 Fed rate hike cycle is the fastest, with a 2.36 percentage point increase in just six months. In contrast, the 1988-1989 cycle took 14 months to reach a 3.23 percentage point increase, making the current cycle nearly twice as fast.

The most severe rate hikes took place during the 2004-2006 cycle, with the EFFR climbing by almost four percentage points. However, this occurred over a more extended period, taking two years to reach that level.

ETF Newz Says:

The variation in rate hike cycles is primarily driven by the Fed’s response to changing economic conditions, including inflation, employment, and other factors. In the current 2022 cycle, high inflation rates have prompted the Fed to act more aggressively to contain inflationary pressures. The rapid pace of rate hikes, however, poses risks to the economy, as it can lead to an economic slowdown and potentially contribute to a global recession and in 2023 bank failures.

Heavily Traded ETFs
SPDR S&P 500 - SPY
Invesco QQQ
Vanguard S&P 500 - VOO
Vanguard Total Market - VTI
Energy Select Sector - XLE

Vanguard Expands Active Fixed Income ETF Lineup with New Offerings

Vanguard, a prominent player in the asset management industry, is further bolstering its presence in the active fixed...

VanEck Launches Office and Commercial REIT ETF (DESK)

VanEck, a firm known for its ETF offerings, has launched the VanEck Office and Commercial REIT ETF (DESK),...

Roundhill Investments Launches First LNG-Focused ETF as Europe Shifts Away From Russian Gas

Roundhill Investments has introduced the Roundhill Alerian LNG ETF (LNGG), the first exchange-traded fund (ETF) to focus on...

Matthews Asia Launches Five Actively Managed Emerging Market ETFs

Matthews Asia, an investment firm focused on Asia, has introduced five new actively managed exchange-traded funds (ETFs) aimed...