Eric Cinnamond gives a handy FED cheat sheet . He writes
‘Now that we have a better understanding of the Federal Reserve’s tolerance for financial instability (not much), I believe investors are in a better position to gauge future policy responses related to further declines in equity prices. I put my best guess together in the Federal Reserve Cheat Sheet below:
S&P 500 YTD Policy Response
5%+ Gradually raise rates
+5% to -5% Hint at a pause
-5% to -15% Pause
-15% to -20% Hint at rate cut/ending QT
-20% to -25% Cut rates and end QT
-25% to -30% Hint at QE4
-30% or worse Implement QE4
Source: Conversation with myself on the way home from grocery store
Margin of error: +/- a lot’
Full post below