Performance Of Various Asset Classes During Fed Policy Cycles

Sat, 29 Nov 2025 00:00:01 +0000

Introduction

In this post, we will look into the Fed Funds cycles and evaluate asset class performance during loosening and tightening of monetary policy.

Here are the functions needed for this project:

calc_fed_cycle_asset_performance: Calculates the performance of various asset classes during the Fed Funds cycles.
df_info: A simple function to display the information about a DataFrame and the first five rows and last five rows.
df_info_markdown: Similar to the df_info function above, except that it coverts the output to markdown.
export_track_md_deps: Exports various text outputs to markdown files, which are included in the index.md file created when building the site with Hugo.
load_data: Load data from a CSV, Excel, or Pickle file into a pandas DataFrame.
pandas_set_decimal_places: Set the number of decimal places displayed for floating-point numbers in pandas.
plot_bar_returns_ffr_change: Plot the bar chart of the cumulative or annualized returns for the asset class along with the change in the Fed Funds Rate.
plot_timeseries: Plot the timeseries data from a DataFrame for a specified date range and columns.
plot_scatter_regression_ffr_vs_returns: Plot the scatter plot and regression of the annualized return for the asset class along with the annualized change in the Fed Funds Rate.
yf_pull_data: Download daily price data from Yahoo Finance and export it.

First, let’s get the data for the Fed Funds rate (FFR):