Fed Swaps Price In Higher Peak Policy Rate Of 5.35% In Sept.; Fed Swaps No Longer Consider 2023 Rate Cut Likely
Portfolio Pulse from Benzinga Newsdesk
Fed swaps now price in a higher peak policy rate of 5.35% in September, indicating that a 2023 rate cut is no longer considered likely. This change in expectations may impact the broader market, including the SPY ETF.
June 14, 2023 | 6:07 pm
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The change in Fed swaps pricing, indicating a higher peak policy rate and reduced likelihood of a 2023 rate cut, may impact the SPY ETF in the short term.
The change in Fed swaps pricing suggests a shift in market expectations regarding interest rates. This may lead to increased uncertainty and potential volatility in the broader market, including the SPY ETF. However, the exact impact on the ETF's price is uncertain, as other factors may also influence its performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75