Powell Says We Will Return To 2% Inflation; We Are Moving Balance Sheet Back Down, But Won't Go Back To A Scarce Reserves Level; It Is Important That The Balance Sheet Not Just Grow With Every Cycle
Portfolio Pulse from Happy Mohamed
Federal Reserve Chairman Jerome Powell stated that the US will return to 2% inflation and the Fed is working on reducing its balance sheet, but will not return to a scarce reserves level. Powell emphasized the importance of not allowing the balance sheet to grow with every economic cycle.
June 21, 2023 | 3:19 pm
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NEUTRAL IMPACT
Fed Chairman Powell's statement on returning to 2% inflation and reducing the balance sheet may impact the SPY ETF in the short term.
Powell's statement on returning to 2% inflation and reducing the balance sheet indicates the Fed's commitment to maintaining a stable economic environment. This may have a neutral impact on the SPY ETF in the short term as investors digest the information and assess its implications on the broader market.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50