Fed's Mester Says Likely To Favor Hike At Next Meeting If Current Economic Situation Holds; Long-Term Yield Rise Will Affect Monetary Policy Outlook; Higher Long-term Rates Will Moderate Growth; Fed Likely At Or Near Peak For Interest Rate Target
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve's Mester has indicated a likely favor towards a hike in the next meeting if the current economic situation remains stable. The rise in long-term yield will affect the monetary policy outlook and moderate growth. The Fed is likely at or near the peak for interest rate target.
October 03, 2023 | 3:32 pm
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NEGATIVE IMPACT
The potential interest rate hike and changes in monetary policy could impact the SPY ETF, which tracks the S&P 500. Higher interest rates can slow economic growth, potentially affecting stock prices.
The SPY ETF tracks the S&P 500, which is sensitive to changes in interest rates and monetary policy. Higher interest rates can slow economic growth by making borrowing more expensive, which can in turn affect corporate profits and stock prices. Therefore, the potential rate hike and changes in monetary policy could have a negative impact on the SPY ETF in the short term.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80