Federal Reserve To 'Follow Through' With 0.25% Rate Hike Wednesday, Likely Another Next Meeting, Says Former Atlanta Fed President
Portfolio Pulse from Adam Eckert
The Federal Reserve is expected to raise rates by 0.25% at the end of its two-day FOMC meeting, according to former Atlanta Fed president Dennis Lockhart. This would bring the fed funds rate to its highest level in over 20 years. Lockhart also anticipates another rate hike in September. The market is pricing in a 98.9% chance of a 0.25% hike this afternoon, with a 20% expectation for a subsequent hike in September. The SPDR S&P 500 (NYSE:SPY) was down 0.14% at $454.78 at the time of writing.

July 26, 2023 | 2:23 pm
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The SPDR S&P 500 (NYSE:SPY) was down 0.14% at $454.78 at the time of writing. The expected rate hike could further impact the ETF's performance.
The expected rate hike by the Federal Reserve could lead to a downturn in the stock market, impacting the performance of the SPY ETF. The market is already pricing in the rate hike, which is likely contributing to the current decrease in the SPY's price.
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