Fed's Powell Says Reverse Repo Is Not Having An Effect On Economy, Have Seen Volumes Decline Since Treasury Began Issuance Ramp-Up; Don't Know How Much Reverse Repo Will Shrink
Portfolio Pulse from Happy Mohamed
Federal Reserve Chairman Jerome Powell stated that the reverse repo program is not impacting the economy and has seen volumes decline since the Treasury began increasing issuance. The extent of the reverse repo program's shrinkage remains uncertain.
June 21, 2023 | 5:06 pm
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NEUTRAL IMPACT
Fed's Powell's statement on reverse repo not impacting the economy and declining volumes may have a neutral effect on SPY in the short term.
The statement by Fed's Powell indicates that the reverse repo program is not having a significant impact on the economy, which may not lead to any major changes in the market sentiment. As a result, the impact on SPY, which tracks the broader market, is expected to be neutral in the short term.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50