Former Fed Vice Chair Clarida Says Fed Will Be Doing Less QE; Says Bar For Rate Cuts Is High
Portfolio Pulse from Benzinga Newsdesk
Former Fed Vice Chair Richard Clarida stated that the Federal Reserve will be doing less quantitative easing (QE) and that the bar for rate cuts is high.
June 06, 2023 | 1:44 pm
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NEGATIVE IMPACT
The reduction in QE and high bar for rate cuts by the Fed may lead to a short-term negative impact on the SPY ETF.
The reduction in quantitative easing and high bar for rate cuts by the Federal Reserve may lead to a tightening of monetary policy, which could result in higher interest rates. This may negatively impact the stock market and the SPY ETF, as higher interest rates can lead to lower stock prices due to increased borrowing costs for companies and reduced consumer spending.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50