FOMC Meeting Preview: Powell Faces Crucial Decision As Inflation Data Puts Fed At A Crossroads
Portfolio Pulse from Piero Cingari
The Federal Open Market Committee (FOMC) is expected to increase the fed funds rate by 25 basis points in its upcoming meeting, pushing borrowing costs to 5.25-5.5%, the highest since February 2001. Economists are divided on whether this will mark the end of the current rate-hiking cycle. Inflation remains a key factor in shaping the Fed’s decisions. Analysts from Comerica Wealth Management, Bank of America, truflation, and LPL Financial have shared their insights on the potential outcomes of the meeting.
July 25, 2023 | 6:29 pm
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The expected rate hike by the FOMC could impact the SPY ETF. Higher interest rates generally lead to lower stock prices as borrowing costs increase for companies, potentially affecting their profitability.
The SPY ETF tracks the S&P 500 index, which is a broad representation of the US stock market. An increase in the fed funds rate could lead to higher borrowing costs for companies, potentially affecting their profitability and thus their stock prices. This could in turn impact the value of the SPY ETF.
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