Global Central Banks React to Slowed Economic Momentum

April 18, 2019 | David Hernandez, CFA, Director of Traditional Manager Search

In 2017 the global economy underwent a synchronized move upward and investors saw equities throughout the world generate double-digit returns. That momentum was lost in 2018 and most economic data points missed analysts’ expectations leading to downward revisions in GDP growth. As a result, several major central banks have taken steps to become more accommodative to help navigate the slowdown.

In the U.S., the Fed has put future rate hikes on pause and has communicated it will be patient on future adjustments. Based on Fed Funds futures, the market expects an eventual rate cut. In Europe, the ECB extended its no rate hike stance through the end of 2019. Additionally, the central bank announced its third targeted long-term refinancing operation aimed at avoiding a credit squeeze that could exacerbate the economic slowdown. In China, authorities organized a stimulus package including $298B in tax cuts to help boost domestic demand. Additionally, the country has reduced the bank reserve ratio from 17% at the start of 2018 to 13.5% as of 1Q19. Though still early, there has not been a marked improvement in global economic activity. However, markets have welcomed the more accommodative stances from these three key central banks and equity markets have rebounded from the tough 4Q 2018.

Print PDF > Global Central Banks React to Slowed Economic Momentum

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

David Hernandez, CFA
Director of Traditional Manager Search

Get to Know David

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

Related Content

Line chart showing average option-adjusted spreads (OAS), in basis points, on Bloomberg CCC U.S. High Yield and Bloomberg U.S. Corporate High Yield bonds from December 2025 through October 2026. CCC-rated high yield spreads increased from approximately 600 bps to 1,100 bps, reaching their highest levels in nearly four years, while broader U.S. corporate high yield spreads remained relatively stable, increasing from approximately 260 bps to 330 bps. Source: Bloomberg as of November 6, 2026. For full dataset, please contact marquettemarketing@marquetteassociates.com.

11.09.2026

C’s Get Degrees (of Pain)

The U.S. distressed debt market is showing increasingly pronounced signs of stress. As of this writing, option-adjusted spreads on CCC-rated…

Bar chart comparing October and year-to-date 2026 returns for Korea, Taiwan, Brazil, India, China, and the MSCI Emerging Markets Index. October returns are below zero for most markets, while year-to-date returns range from negative to positive. For full dataset, please contact marquettemarketing@marquetteassociates.com.

11.02.2026

The Haunting of Emerging Markets

Emerging markets faced a challenging October, with the space declining by around 8.3% amid renewed concerns over the sustainability of…

Stacked bar chart showing U.S. private equity deal value by deal size from Q1 2022 through Q2 2026. The y-axis shows percentage of total deal value from 0% to 100%, and the x-axis shows quarters by year. Stacked bar chart showing the percentage of U.S. private equity deal count by deal size from Q1 2022 through Q2 2026. The y-axis ranges from 0% to 100%, and the x-axis shows quarters by year. For full dataset, please contact marquettemarketing@marquetteassociates.com.

10.26.2026

Smaller Deals, Larger Appeal

Private equity activity is increasingly shifting toward smaller transactions, with total deal value for transactions of $100 million or less…

10.08.2026

3Q 2026 Market Insights

This video is a recording of a live webinar held October 22 by Marquette’s research team analyzing the third quarter…

10.22.2026

Will Higher Rates Cramp the Markets?

Anyone who has run a marathon knows the last six miles are brutal — no matter how well the first…

Line chart comparing S&P 500 Index cumulative returns for midterm and non-midterm election years since 1980. The x-axis shows October through December, and the y-axis shows S&P 500 Index cumulative return, ranging from -1% to 8%. For full dataset, please contact marquettemarketing@marquetteassociates.com.

10.19.2026

Divided We Rise?

Since 1980, the S&P 500 Index has generally performed well in the weeks surrounding U.S. midterm elections. Specifically, the index…

More articles

Subscribe to Research Email Alerts

Research Email Alert Subscription

Research alerts keep you updated on our latest research publications. Simply enter your contact information, choose the research alerts you would like to receive and click Subscribe. Alerts will be sent as research is published.

We respect your privacy. We will never share or sell your information.

Thank You

We appreciate your interest in Marquette Associates.

If you have questions or need further information, please contact us directly and we will respond to your inquiry within 24 hours.

Contact Us >