Fed's Powell Says Above Trend Growth Could Warrant More Fed Rate Rises; Says Getting Inflation Back To 2% Likely Requires Below Trend Growth
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve Chairman Jerome Powell has indicated that above trend growth could necessitate further rate hikes. He also stated that to bring inflation back to 2%, it may require below trend growth.
August 25, 2023 | 2:08 pm
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The Federal Reserve's potential rate hikes could impact the SPY ETF, as it tracks the S&P 500 index which is sensitive to interest rate changes.
The SPY ETF tracks the S&P 500 index, which is sensitive to changes in interest rates. If the Federal Reserve increases rates due to above trend growth, it could lead to a decrease in the value of the SPY ETF in the short term as higher interest rates can make stocks less attractive compared to other investments.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 75