Fed's Kashkari Says I Put A 40% Probability On A Scenario Where Fed Will Have To Raise Rates Significantly Higher To Beat Inflation; We Can Observe Progress On Inflation Over Next Several Months To Figure Out Which Scenario Is The Dominant One
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve's Neel Kashkari has stated that there is a 40% probability that the Fed will have to raise interest rates significantly to combat inflation. The progress on inflation will be observed over the next few months to determine the dominant scenario.

September 26, 2023 | 2:09 pm
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The potential for significant interest rate hikes by the Federal Reserve could impact the SPY ETF. Higher interest rates can lead to lower stock prices, which could negatively affect the ETF.
The SPY ETF tracks the S&P 500, which is a broad representation of the US stock market. If the Federal Reserve raises interest rates significantly, it could lead to lower stock prices as borrowing costs for companies increase, potentially reducing their profits. This could lead to a decrease in the value of the SPY ETF.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 75