Bull/Bear Market Chart

This chart shows the Bull and Bear markets starting in the year 2000. In addition, it shows points where the Federal Reserve engaged in “quantitative easing” or QE in the chart. This basically means that the Federal reserve, during these periods, infused money into the economy. Also, ECB represents the European Central Bank essentially Europe’s Federal Reserve and they infused money at the point listed “ECB” on the chart as well.

Federal Reserve Balance Sheet Chart

This chart shows the Federal Reserve Balance sheet, with regard to loans outstanding, compared with the Federal Funds Rate. This chart essentially shows the relationship in the amount of the infused cash (as stated in the Bull/Bear chart above) with the rate that the Federal Reserve sets for banks to loan each other money.

The downward slope on the black line shows that the Federal Reserve is reducing the amount of these funds outstanding effectively reducing the amount of money in circulation. in addition, the red line is the rate that the Federal Reserve sets for Banks to loan to each other so they are less willing to issue loans at rates that consumers find acceptable.