Minneapolis Fed President Kashkari In Know Of No Theoretical Framework That Can Tell Us How Much We Will Need To Tighten Long Real Rates To Get Inflation Back To 2% In A Reasonable Time Frame; I Put A 60% Pct Probability On A Soft Landing
Portfolio Pulse from Benzinga Newsdesk
Minneapolis Fed President Kashkari stated that there is no theoretical framework that can predict how much tightening of long real rates will be needed to bring inflation back to 2% in a reasonable time frame. He estimates a 60% probability of a soft landing.
September 26, 2023 | 2:09 pm
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NEUTRAL IMPACT
Kashkari's comments suggest uncertainty about the future direction of inflation and interest rates, which could lead to increased volatility in the stock market, potentially impacting the SPY ETF.
The SPY ETF tracks the S&P 500, which is sensitive to changes in inflation and interest rates. Kashkari's comments suggest that the path to controlling inflation is unclear, which could lead to increased market volatility and impact the performance of the SPY ETF.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50