Fed's Hawk-Dove Divide Widens Amid Rate Hike Expectations
Portfolio Pulse from AJ Fabino
The Federal Open Market Committee (FOMC) meeting minutes showed a consensus for continued interest rate hikes next year, echoing Fed Chair Jerome Powell's stance. Economists are divided in their interpretation of the minutes, with some foreseeing a mild recession due to tightening credit conditions. Post minutes’ release, the SPDR S&P 500 ETF (SPY) and the Invesco QQQ Trust (QQQ) saw subtle reactions.
July 05, 2023 | 9:21 pm
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NEGATIVE IMPACT
The Invesco QQQ Trust (QQQ) erased session gains following the release of the FOMC minutes.
The FOMC minutes indicating continued rate hikes in 2023 could lead to increased market volatility, potentially impacting the QQQ negatively in the short term.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The SPDR S&P 500 ETF (SPY) saw a subtle reaction to the FOMC minutes, ebbing 0.3%.
The FOMC minutes indicating continued rate hikes in 2023 could lead to increased market volatility, potentially impacting the SPY negatively in the short term.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80