Fed's Barkin Says Balance Sheet Normalization In The "Background" Of Policy At This Point
Portfolio Pulse from Happy Mohamed
Federal Reserve's Barkin stated that balance sheet normalization is currently in the 'background' of policy. This suggests that the Fed is not actively pursuing balance sheet reduction at this time.
August 22, 2023 | 12:45 pm
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The Fed's stance on balance sheet normalization could indirectly affect the SPY ETF. A lack of active balance sheet reduction may lead to a more accommodative monetary policy, potentially supporting equity prices.
The Federal Reserve's balance sheet normalization policy can impact the overall market sentiment and liquidity, which in turn can affect the SPY ETF. If the Fed is not actively reducing its balance sheet, it could mean a more accommodative monetary policy, which is generally supportive of equity prices.
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IMPORTANCE 60
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