Fed Chair's Powell Says Could Be Cutting Rates While Continuing Quantitative Tightening
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve Chairman Jerome Powell has indicated that the Fed could be cutting interest rates while continuing its quantitative tightening (QT) policy, according to Bloomberg.
July 26, 2023 | 7:17 pm
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NEUTRAL IMPACT
The SPY ETF, which tracks the S&P 500, could be impacted by the Fed's potential policy changes. Lower interest rates could stimulate economic activity, potentially boosting stock prices, while continued QT could have the opposite effect.
The SPY ETF tracks the S&P 500, a broad measure of the US stock market. Changes in Fed policy, particularly interest rates and QT, can significantly impact the stock market. Lower interest rates can stimulate economic activity and boost stock prices, while QT, which involves the Fed reducing its balance sheet, can have the opposite effect by tightening monetary conditions. However, the net impact on SPY is uncertain, hence the neutral score.
CONFIDENCE 70
IMPORTANCE 80
RELEVANCE 75