Fed's Powell Says We Are Prepared To Raise Rates Further If Appropriate; We Intend To Hold Rates At Restrictive Level Until Confident Inflation Is Moving Sustainably Down To 2%; Fed Will Decide Next Rate Moves Based On Data
Portfolio Pulse from Happy Mohamed
Federal Reserve Chairman Jerome Powell has stated that the Fed is prepared to raise interest rates further if necessary. The intention is to hold rates at a restrictive level until there is confidence that inflation is moving sustainably down to 2%. Future rate decisions will be based on data.
August 25, 2023 | 2:04 pm
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NEGATIVE IMPACT
The Federal Reserve's potential decision to raise interest rates could impact the SPY ETF. Higher interest rates can lead to lower stock prices as borrowing costs increase for companies.
The SPY ETF tracks the S&P 500, which is a broad representation of the US stock market. If the Federal Reserve raises interest rates, borrowing costs for companies increase, which can lead to lower profits and lower stock prices. This would negatively impact the value of the SPY ETF.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100