Fed Chair Powell Says It Is Possible Neutral Rate At This Moment Is Higher
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve Chairman Jerome Powell has suggested that the current neutral interest rate may be higher than previously thought. This could potentially lead to a faster pace of monetary tightening, which could impact the broader market.
September 20, 2023 | 6:49 pm
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The SPDR S&P 500 ETF (SPY) could be impacted by Powell's comments as a higher neutral rate could lead to faster monetary tightening, potentially affecting the broader market.
A higher neutral rate could lead to faster monetary tightening, which could increase borrowing costs for companies, potentially leading to lower profits and stock prices. As SPY tracks the S&P 500, it could be negatively impacted by these potential market-wide effects.
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