Fed's Jefferson Repeats That Monetary Policy Works With A Lag, And A Year Is Not Long Enough To Feel The Full Effect; Base Case Outlook Is Not For Recession; Higher Interest Rates And Lower Earnings Could 'test The Ability Of Businesses To Service Debt
Portfolio Pulse from Happy Mohamed
Federal Reserve's Jefferson stated that monetary policy works with a lag and a year is not long enough to feel the full effect. He added that the base case outlook is not for a recession, but higher interest rates and lower earnings could test businesses' ability to service debt.
May 31, 2023 | 5:27 pm
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Fed's Jefferson's comments on monetary policy and interest rates may impact the overall market, potentially affecting the SPY ETF.
Fed's Jefferson's comments on monetary policy and interest rates can influence the overall market sentiment. While he stated that the base case outlook is not for a recession, higher interest rates and lower earnings could test businesses' ability to service debt, which may create uncertainty in the market. This uncertainty could potentially impact the SPY ETF, which tracks the S&P 500 index.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50