Chart Library
2026-09-23

S&P 500 Excess Return After Fed Hikes: Soft vs Hard Landings Diverge Sharply

S&P 500 Excess Return After Fed Hikes: Soft vs Hard Landings Diverge Sharply

Key points

S&P 500 excess return around Fed tightening cycles since the 1960s | The soft-landing mean climbs ~80% later on while the hard-landing mean stalls near zero

Image source: @SoberLook