Powell Says Says Core Inflation Is Still Elevated And We Need To Hold Policy At Restrictive Levels And Be Prepared To Raise Further If Appropriate
Portfolio Pulse from Bill Haddad
Federal Reserve Chairman Jerome Powell has stated that core inflation remains high, necessitating the maintenance of restrictive monetary policy. He also indicated that the Fed is prepared to raise rates further if deemed appropriate.
July 26, 2023 | 6:51 pm
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The statement by Federal Reserve Chairman Jerome Powell about the possibility of further rate hikes could potentially impact the SPY ETF. Higher interest rates generally lead to lower stock prices as borrowing costs increase for companies.
The SPY ETF tracks the S&P 500, which is a broad representation of the US stock market. When the Federal Reserve raises interest rates, borrowing costs for companies increase, which can lead to lower corporate profits and lower stock prices. Therefore, the statement by Powell about the possibility of further rate hikes could potentially lead to a decrease in the price of the SPY ETF.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 80