Inflation Concerns Rekindle Rate Hike Debate: What 5 Top Economists Say After July FOMC Minutes Reveal
Portfolio Pulse from Piero Cingari
The July FOMC minutes reveal a divergence of views among Federal Reserve officials, with a majority emphasizing the presence of significant upside risks to inflation, potentially requiring further tightening of monetary policy. This led to a surge in the U.S. dollar and a rise in Treasury yields, while stocks stumbled. Economists suggest that the Fed might raise rates by a quarter-point in the last quarter if the economy keeps growing and wages remain elevated. The SPDR S&P 500 ETF Trust (SPY) and the Invesco QQQ Trust (QQQ) both closed lower.
August 16, 2023 | 8:53 pm
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NEGATIVE IMPACT
The Invesco QQQ Trust (QQQ) slipped 1.1% following the release of the July FOMC minutes.
The release of the July FOMC minutes, which suggested potential tightening of monetary policy due to inflation risks, led to a negative market reaction. This was reflected in the 1.1% drop in the price of QQQ.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The SPDR S&P 500 ETF Trust (SPY) closed 0.7% lower following the release of the July FOMC minutes.
The release of the July FOMC minutes, which suggested potential tightening of monetary policy due to inflation risks, led to a negative market reaction. This was reflected in the 0.7% drop in the price of SPY.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80