Interest rates with rising volatility on the equity markets

The Fed often, but not always, lowers interest rates when stock market volatility rises sharply. Examples such as the Iraqi invasion of Kuwait in 1990, the Asian crisis in 1998, the recessions in 2002 and 2008 and the outbreak of the pandemic in 2020 demonstrate this. Higher volatility on the equity markets does not always go hand in hand with a Fed tightening cycle either. For example, VIX levels were lower during the 2004-2007 interest rate cycle and for almost the entire 2016-2019 cycle: