Powell Hits The Brakes After 10 Straight Interest Rate Increases, But Fed Signals More Hikes Coming This Year
Portfolio Pulse from Piero Cingari
The Federal Reserve held the fed funds rate unchanged at 5%-5.25%, marking the first pause in the tightening cycle since March 2022. However, the Fed's economic projections indicate two more rate hikes in 2023, followed by a full percentage point cut in 2024.
June 14, 2023 | 6:15 pm
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The Federal Reserve's decision to hold the fed funds rate steady may impact the SPY ETF, as it reflects the overall market sentiment and reaction to the Fed's monetary policy.
The Federal Reserve's decision to hold the fed funds rate steady and signal more hikes in 2023 and a cut in 2024 can have mixed effects on the market. While the pause in the tightening cycle may provide some relief to investors, the anticipation of future rate hikes and cuts can create uncertainty. As the SPY ETF is designed to track the performance of the S&P 500 Index, it may be impacted by the overall market sentiment and reaction to the Fed's monetary policy.
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