Fed Chair Powell Says In Terms Of Neutral Rate, You Only Know When You Get There; It May Be That The Neutral Rate Has Risen
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve Chair Jerome Powell has stated that the neutral rate is only known when it is reached, and suggested that it may have risen. This could potentially impact the interest rates and the overall economy.
September 20, 2023 | 6:48 pm
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NEUTRAL IMPACT
The potential rise in the neutral rate suggested by Fed Chair Powell could impact the SPY ETF, as it could lead to changes in interest rates and the overall economy.
The neutral rate is the theoretical federal funds rate at which the stance of Federal Reserve monetary policy is neither accommodative nor restrictive. If it has risen, it could mean that the Fed might increase interest rates, which could impact the overall economy and thus the SPY ETF, which tracks the S&P 500 and is a good indicator of the overall US stock market.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50