Fed's Powell Says Need Some Further Progress On Non-Housing Services Inflation; Policy Restrictive, But Fed Can't Be Certain What Neutral Rate Level Is; Fed Will Not Change 2% Inflation Target; Fed Is Mindful Monetary Policy Faces Risks On Both Sides
Portfolio Pulse from Happy Mohamed
Federal Reserve Chairman Jerome Powell stated that there is a need for further progress on non-housing services inflation. He also mentioned that the policy is restrictive, but the Fed cannot be certain about the neutral rate level. Powell confirmed that the Fed will not change the 2% inflation target and is mindful of the risks on both sides of monetary policy.
August 25, 2023 | 2:06 pm
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NEUTRAL IMPACT
The comments from Fed's Powell about the need for further progress on non-housing services inflation and the uncertainty about the neutral rate level could impact the SPY ETF, which tracks the S&P 500 and is sensitive to monetary policy changes.
The SPY ETF, which tracks the S&P 500, is sensitive to changes in monetary policy. Powell's comments about the need for further progress on non-housing services inflation and the uncertainty about the neutral rate level could create some volatility in the short term. However, the impact is uncertain as it depends on how investors interpret these comments and the overall market sentiment.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 75