Fed's Chair Powell Says September Decision Could Be Another Hike Or Remaining Where We Are
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve Chair Jerome Powell has indicated that the decision in September could either be another interest rate hike or maintaining the current rate.
July 26, 2023 | 6:44 pm
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NEUTRAL IMPACT
The Federal Reserve's decision on interest rates in September could impact the SPY ETF. A rate hike could potentially lead to a decrease in the ETF's value, while maintaining the current rate could stabilize it.
The SPY ETF tracks the S&P 500, which is sensitive to changes in the Federal Reserve's interest rates. A rate hike could lead to a decrease in the value of the ETF as higher interest rates can make borrowing more expensive for companies, potentially impacting their profitability and thus their stock prices. On the other hand, if the Fed decides to maintain the current rate, it could stabilize the ETF's value as it removes the uncertainty of a potential rate hike.
CONFIDENCE 70
IMPORTANCE 80
RELEVANCE 75