Fed To Cut Fed Funds Rate At Least Once By End-Q2 2024, Say 79 Of 95 Economists; U.S. Economy To Skirt Recession, Median Probability In One Year Falls To 40%, Lowest In Over A Year
Portfolio Pulse from Benzinga Newsdesk
According to a Reuters poll, 79 out of 95 economists predict that the Federal Reserve will cut the Fed Funds Rate at least once by the end of Q2 2024. The median probability of the U.S. economy entering a recession within a year has fallen to 40%, the lowest in over a year.
August 18, 2023 | 1:12 pm
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POSITIVE IMPACT
The predicted rate cut by the Federal Reserve could potentially lead to a rise in the SPY ETF, as lower interest rates generally encourage investment in the stock market. However, the reduced probability of a recession could also be a positive signal for the ETF.
The Federal Reserve's potential rate cut could lower borrowing costs, encouraging more investment in the stock market, which would likely benefit the SPY ETF. Additionally, the reduced probability of a recession could signal a more stable economic environment, which is generally positive for the stock market.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50