Federal Reserve's No-Shock Rate Hike Draws Mixed Reactions From Economists: What The Fed's Next Move?
Portfolio Pulse from AJ Fabino
The Federal Reserve has raised the federal funds rate by 25 basis points to a range of 5.25%-5.5%, the highest since February 2001. Economists have mixed reactions to the move. Quincy Krosby, Chief Global Strategist for LPL Financial, noted the two-year Treasury note inching lower and the Russell 2000 edging higher. Joe Brusuelas, Chief Economist at RSM U.S., believes the rate hike is the final increase in a two-year effort to restore price stability. Bill Adams, Chief Economist for Comerica Bank, expects the Fed to refrain from further rate hikes. Chris Zaccarelli, Chief Investment Officer for Independent Advisor Alliance, advises staying fully invested but diversified. Lawrence Yun, Chief Economist at the National Association of Realtors, noted the impact of increased interest rates on home sales and business investments.
July 26, 2023 | 9:21 pm
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NEUTRAL IMPACT
The Federal Reserve's rate hike could impact the SPY ETF. The rate hike has led to mixed reactions from economists, with some expecting no further hikes and others noting the impact on markets and investments.
The Federal Reserve's decision to raise the federal funds rate could have a mixed impact on the SPY ETF. While some economists believe this is the final increase in a two-year effort to restore price stability, others expect the Fed to refrain from further rate hikes. This uncertainty could lead to volatility in the ETF's price.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 50