Jerome Powell At Jackson Hole: Fed Is Ready To Raise Rates Further If Appropriate
Portfolio Pulse from Piero Cingari
Federal Reserve Chair Jerome Powell stated that the Fed is prepared to raise rates further if necessary to achieve its price stability goal. Powell emphasized the commitment to keep rates at a restrictive level until a sustainable decline in inflation is observed. Powell’s remarks have prompted a recalibration of market expectations, with the odds of a rate hike in September surging to 21.5%, and the likelihood of a rate hike by November rising to 52%, according to data from CME Group.
August 25, 2023 | 2:58 pm
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
The SPDR S&P 500 ETF (SPY) could be impacted by the Federal Reserve's potential rate hikes. Higher interest rates can lead to lower stock prices as borrowing costs increase for companies, potentially affecting their profitability.
The Federal Reserve's potential rate hikes could impact the SPDR S&P 500 ETF (SPY) as higher interest rates can lead to lower stock prices. This is because higher interest rates increase borrowing costs for companies, which can affect their profitability and, in turn, their stock prices. As SPY tracks the S&P 500 Index, any broad market movements caused by changes in interest rates could impact the ETF.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 75